Imagine spending the time and money to get a mortgage and purchase a home, only to find out that the seller was not the actual owner.
This nightmare scenario happens to homebuyers time and again when they fail to demand a thorough title search. There are a number of factors that could cause trouble with home title that could prevent you from using the property fully and lead to significant financial loss. When you hire a title company to do a search before your closing, here are some of the problems they could find.
Fraud
Fraud involving real estate titles is surprisingly easy to accomplish. Without a careful title review, a real estate company may completely unwittingly sell you a property that their client actually does not have a right to sell. For instance, a seller may present himself or herself as the owner of a property and transfer the property to a buyer using a notarized deed, all while being a renter or other person unauthorized to sell the home. When this occurs, the real owners can demand that the courts negate the sale, leaving the buyer facing significant financial loss.
Will Conflicts
Sometimes, properties do not pass seamlessly to heirs, and conflicts can complicate ownership. When this occurs, one party may sell the home without the other party’s knowledge, and the party who was unaware of the sale may return to reclaim his or her portion of the property. Real estate agents and buyers are usually completely unaware of these conflicts and complete closing in good faith, only to face displacement and financial ruin in the future.
Missing Heirs
Similar to will conflicts, sometimes heirs cannot be located when a property enters probate. If the estate is not settled with all potential heirs before the property is sold, missing heirs could show up and make claims on the property in the future.
At CoreTitle, our extensive title examination services help homeowners avoid these costly mistakes, and our title insurance protects our clients from costly repercussions if a title problem does emerge.