When purchasing a home, it is very important for a homeowner to obtain the title to the home. The title is the document that provides the homeowner with legal ownership of the property. While a homeowner may obtain the title during the closing process, there are several things that can prevent the homeowner from claiming their full legal ownership of that property. These issues with the title are known as title defects. Title defects limit the rights that a homeowner can claim on their property. There are a few common title problems that homeowners should address before moving further in their home ownership process.
Different Title Defects
A title defect, also known as a clouded title, lies in the public records of a title. A cloud on a title allows other entities to claim ownership of a property and needs to be cleared before a property is transferred to another owner. The entities that are claiming ownership of the property have to remove their stakes on a property before it is sold, thus clearing the title.
Public Record Errors
Errors in the public records and mistakes during the filing process can cause a title to obtain a cloud. To be cleared, these errors have to be identified and repaired.
A homeowner may have not paid all of their payments for a property. Over time, these missed payments become liens on the property. The payments must be paid for in order for the liens to be removed.
A deed may have been signed over to an unauthorized party during a previous transfer of the home. A deed that is transferred in this way is declared illegal and must be legalized before a home can be claimed by a new owner.
A party may have unknowingly inherited from a will. The heir to a property must be contacted to provide authorization of the home transfer.
Documents that have been illegal handled will prevent a new homeowner from claiming rights to a property. In order for a new owner to claim rights to the property they will need to contact the correct owners of the property.