Title defects prevent you from claiming full rights to the property and at the end selling the property. Thus, a valid title to the property gives you the right to the ownership of the land.
While looking at a property, you might find it fascinating. Thus, the exterior of a house may tempt you to invest your money as soon as possible. But there are some hidden issues that can create problems with the land. In fact, in some cases, those issues can make the property impossible to buy. One of those issues that are commonly faced is a defective title or title dispute. In such cases, a title lawyer can assist and help in making the correct decision.
If you buy a property without searching for the defects, there is a good chance that you will have to bear the cost of clearing the title. Thus, doing a proper search beforehand will help you in making the right decision. Some title defects are correctable, while others are not. The cost and duration depend on the type of title defect. Some of the title defects may be unpaid debts, errors in public records, or ownership disputes. If you want to make an informed decision, read more to understand how to resolve title defects.
What are title defects?
A title defect is a potential threat to a current owner’s claim or full right to sell a house. A lien or lease are examples of publicly recorded matters that give another party a percentage of ownership of the property.
The titleholder is generally called the property’s owner and has ownership rights. In some cases, such as if the titleholder fails to pay a property tax or utility bill, this right may be restricted. If the titleholder fails to make these payments, the government will put a lien on the property to recover the money.
When you take out a mortgage loan to pay for your home, the lender obtains a lien on the property and has the right to foreclose if the borrower does not meet the loan terms. Lenders need title insurance to cover their investment in the land. Any deficiencies affecting the property will be exposed by a title check. Many investors also require borrowers to include property taxes in their escrow payments to avoid losing their lien priority to a third party, such as the county tax collector.
When the property owner decides to sell, any faults discovered during the title quest need a solution. Thus, they must search for any potential title disputes. The proceeds of the sale are usually used to pay off the mortgage.
Examples of Title Defects
In real estate, a title defect or cloud on the title indicates that there is a problem with the land. Thus, searching for any title disputes is important. Before selling the property, you must resolve the title defects listed below:
- Unidentified liens
- The false resemblance to a previous owner
- Wills that have not been found
- Encumbrances that have yet not found
- Deeds that are against the constitution
- Disputes over boundaries and surveys
- Unknown easements
- Child support liens
- Heirs who have gone missing
- Past-due spousal service liens
- Defaulted taxes
- Liens of mechanics
- Inaccuracies in public records
How to resolve title issues?
There are different types of title defects and title disputes, such as liens. Liens have an easy remedy of simply paying the debt. An example is when any labor not paid for work files a mechanic’s liens. Thus, a simple negotiation may solve the issue.
Another type of title defect occurs due to record errors. Any personnel can cause such record errors that will remain in the history of the land. While clearing this type of title defect is a dull task, it is often low-cost comparatively. Also, there are ownership or right of property possession disputes that can lead to title disputes.
As a new homeowner, it is essential to contact a title attorney or settlement agent to prevent future issues. A real estate attorney with good experience can guide you to the process of having a valid title. Thus, if you wonder is there any title lawyer near me, you can contact Attorneys Real Estate Group for extraordinary services.
How to prevent title disputes or title issues?
Conducting a title search before selling a property can prevent many issues. Once an owner is conscious of the defects, they can remedy most of them. Also, contacting a title attorney will help you in making the correct judgment. A real estate attorney will ensure that the house you intend to purchase is free of all problems. They will also make sure that if there are any title defects, they are resolvable.
Thus, investing in a property is a decision that entirely depends on the scenario. If there is a solvable defect, the customer can invest in the property. Still, if you find yourself in a title dispute, title insurance is there to help.
Title insurance can help tackle the issues with missed information. After purchasing title insurance, you can file a genuine claim to cover some title defects. Thus, you will be free of all future payoffs and legal issues, depending on your insurance. Buying title insurance is a one-time payment that saves you from the future hassle and challenges to your right to the property.
Still, you must understand that title insurance does not cover every type of title defect. There are some exceptions in the insurance policies. Thus, running a search with the help of a real estate title attorney can prevent many issues.
Types of title insurance claims
Purchasing title insurance is a one-time payment helpful in the future for owners. If you are wondering how title insurance can be beneficial, here are some examples of what it covers:
- Boundary disputes arise when two property owners claim the same property or when a neighbor tries to grab your land.
- If you discover liens after closing the deal, the company will handle them or other debts on your behalf.
- Omitted heirs
Real Estate Lawsuits – Quiet Title Action California
Still not sure about hiring a title attorney, Quiet Title Action can change your mind. It is a financially emptying lawsuit that requires expert help. When a dispute over the border occurs, the other party can claim an interest in the property. Thus, in simple words, it is a lawsuit in which both parties claim interest or ownership of the same property. Also, they can also have some other interests in the property such as lien or mortgage. If the defendant wins, the court asks them to ignore the other party’s interest in the land.
Some common reasons of Quiet Title Action California are dispute of boundaries, easement, ownership issue of the property, and mortgage. The law states that quiet title action California must be presented with a thorough overview. Thus, the lawsuit must have the support of evidence and records. Still, such claims need the help of a title attorney. Only a title attorney can file or defend such claims.
Statute of Limitations
There is no particular statute of limitation in California. Such hearings depend on underlying causes and proofs. Hence, only an experienced title attorney can guide you. If you are thinking is there any title lawyer near me? Attorneys Real Estate Group can help.
Finding a reliable title attorney can save you from a lot of hassle and loss. With lawsuits like Quiet Title Action California, having an expert title attorney’s help is essential. Especially, since most of the Quiet Title Action requires open court hearing with evidence and witnesses. The process is to ensure the title over the land. Thus, only an expert real estate title attorney can defend the lawsuit.
Most Common Questions Asked About Title Disputes And Defects
The subject of title dispute will always remain controversial amongst different categories of people in California. Failure to have an in-depth understanding of this topic means you may not know the right moves to make for it to be avoided. In order to broaden your knowledge, this section will be explaining some of the most frequently asked questions about title disputes and defects.
What Is The Difference Between Latent Defect And Patent Defect?
Latent defect is a form of concealed or hidden defect. Therefore, it can’t be discovered by inspection or customary observation. It is the opposite of patent defect which happens to be defects that can be noticed after inspection.
In the case of latent defect, the seller of such property is to be held responsible. A typical example is when a building is constructed. At the initial stages, there won’t be any crack. However, such will become obvious after some years. Other examples are rusted internal pumps, leaking roofs, faulty geysers and structural problems.
Is It Possible To Sell A Property That Doesn’t Have Title?
This is one question that many people in California can’t stop asking. It is very possible to sell your house without title or deeds. The only thing is that you will have to show some valid documents for ownership of such property. Anything short of this can make the process become quite complicated. If you can’t have access to the documents of your property, it is recommended to hire the services of an attorney. Such professional will be in the best position to let you know the documents that will be considered valid for such process.
Is Title Insurance Necessary?
Sometimes, people ask this question in a bid to avoid spending extra on insurance contracts. The truth is that you can’t do without title insurance. This is because of the numerous benefits that it can offer. For instance, without it, you will be vulnerable to huge risk in the event of any title defect existing. A typical example is when you buy a house and eventually discovered that the previous owner has some unpaid property taxes. Without title insurance, you may end up paying such amount.
For more protection, it is recommended that you consider hiring an attorney. He can help in many ways to ensure you aren’t covering extra and unnecessary expenses that may arise due to title defects.
Can I Sell A Property That Is Pending In Court?
This is not possible as you may end up having more legal problems. Any property which happens to be under litigation can’t be transferred or sold. Again, this is where you will need the expertise of a tested and proven attorney. He will explain everything to you in order to ensure you don’t end up having any problem with the law.
Although there are exceptional cases whereby a property which is pending in court can be sold or transferred, such are very rare. It is important you understand the details clearly before taking any action.
Real Estate Title Attorney Near Me
Even the most meticulously executed real estate transactions and agreements can lead to title disputes. You will need a legal team to analyze the conflict and develop a strategy to achieve business-oriented solutions. Also, to achieve the desired outcome if litigation arises.
Our team has extensive knowledge and has worked with clients in all areas of real estate. We work hard to achieve the best possible result for our clients by considering their goals. Our team conducts a thorough analysis of the most effective way to achieve the client’s goals. Thus, if you are wondering how to resolve title issues, we can help you with that. Our team can assist in remedying title defects or preventing title defects in the first place.
Thus, if you are thinking is there any title attorney near me? You have come to the right place. Finding a reliable title attorney can save you from potential financial loss. If you need legal assistance for an issue related to real estate, contact Attorneys Real Estate Group today. Please reach out online or call 916-671-3138; we hope to assist you. You can even get a free consultation!