How Do Common Title Problems Occur?
Every property has a history – long or short. Within that period of time, problems with property titles can occur. Whether it was a mistake in filing paperwork or something as deliberate as a forgery, it’s a problem you don’t want to pop up unexpectedly when you’re in the closing process with a homebuyer.
Here are five title issues that commonly occur, along with a solution on how to avoid them so you and your client can have a smooth closing.
Filing Errors in Public Records
Anyone can make a mistake, but when those mistakes have to do with a homeowner’s property, it can be disastrous. A simple filing error can affect the title or survey of a property and result in costing a homebuyer more just to correct the mistake.
One of many common title problems is an unknown lien. A lien is a claim or legal right against assets, such as a house and its property, typically used as collateral to fulfill a debt. A former homeowner might have had outstanding debt, and the bank placed a lien.
Although the debt is not your client’s, banks and other financing companies can place liens on a property for unpaid debts – even after closing.
Even if a chain of title on a property seems perfectly normal, it is possible that another title was made. Invalid title acts can be done by individuals such as undocumented immigrants, minors, or someone who reported to be single but is married.
Invalid titles can cause a situation that may affect the present ownership of a home, and cause a headache for those who need to solve the issue.
Document forgeries filed in public records can affect property ownership by blurring the answer on who has rightful ownership. If a forgery is revealed, then it can put a home or property in jeopardy. Examples of forgeries with real estate documents include fraudulent signatures and forged titles, among other documents used for property titles. These schemes often use computers to create fraudulent documents and get them into the public record.
Your client can purchase a home, thinking it is rightfully theirs until years later, when someone shows up to claim your client’s home as theirs because of an unknown will. This can put the current homebuyer in a predicament that can cost them a fortune and many sleepless nights.
Avoid Common Title Problems with a Title Search and Title Insurance
Work with the professionals at TitlePlus in Baton Rouge to ensure a clear title with a thorough title search that will help keep your client’s property ownership safe from potential issues. Call TitlePlus at 225-709-3500 for reliable title search services and more!
In addition, you can help your clients protect their home by highly suggesting that they invest in title insurance. Title insurance can help protect them from any of the common title problems above, so they can live knowing their homeownership or investment will not be jeopardy.
With a thorough title search and title insurance, your client will be better protected from any issues with the ownership of their home.