Title Problems That Could Cause Closing Delays

When purchasing or selling a property, issues pertaining to the title may give rise to serious complications listed below:

⁕ Asset line disputes

⁕ Outstanding debts

⁕ Divorce

⁕ Mistakes in appraisals

The above mentioned factors can all contribute to these shortcomings and can become the reasons behind the fall of a home sale. Before a seller may give a buyer ownership of their house, these issues need to be fixed.

Defects In Public Records

The legal document that outlines the property’s specifications and ownership can become problematic if it contains errors in the deed. Closing cannot occur until an administrative mistake or an omitted piece of information in the title has been corrected and refiled.

Liens

A legal claim may be placed on the property by the bank, company, or government agency that the seller owes money to if they have delinquent taxes or bills. This implies that the person who owes the money attaches a legal claim to the house’s title. This encumbrance often cannot be released until the debt is settled. A court may inadvertently place a lien against the property if the seller shares the same name as another person who owes money.

Uncertain limits

An undefined property line may allow a neighbor or government agency to claim ownership of a portion of the house. This could occur when your residence encroaches on another person’s land or if a portion of your home is located in the public domain. It is critical to maintain stated boundaries to preserve your rights and avoid any conflicts. A qualified surveyor should be consulted if you are unclear about the circumference of the region to make sure they are appropriately designated.

Fraudulent And Deceptive Practices

A deed must be delivered properly for it to be considered genuine, signifying the seller’s intention to be passed on ownership permanently.  This typically entails records and actual transfer of the property.

A previous owner might have illegally documented their title, such as by including an undocumented immigrant, a minor, or someone with an unsound mind on the deed. Additionally, outright fraud could involve someone falsely claiming ownership or forging documents. Such real estate scams are more common than expected, potentially leading to unintended payments.

The Unclaimed Fortune

Ownership disputes can occur if the property owner dies before selling the home. This could happen due to missing family members claiming inheritance, a contested will, or a newly discovered will with different possession stipulations. While unlikely, these scenarios are possible.

Closing delays can be frustrating. Understanding common causes helps you be prepared and proactive. Address potential issues early and maintain open communication to ensure a smooth and timely closing process. Cash home buyers are a great option for selling homes with title problems, such as liens or unclear ownership. They can quickly purchase these properties, saving you time and hassle. For more such useful content, check out our other blogs by experienced real estate agent bloggers.