Your Guide to Common Issues, Red Flags, and How to Avoid Closing Delays
As a potential homebuyer, your search for “home sweet home” will likely include a list of well-thought-out criteria, such as budget, location, and resale value. Once you find a home that checks all the boxes, however, you probably won’t be thinking about investigating its past.
Fortunately, your title company can uncover any defects in the home’s title to protect you from past ownership conflicts. Our recent blog articles discussed a few of these possible defects, including liens and judgements, land and boundary disputes, and chain-of-title problems.
This month, our series on “Title Troubles” continues with an overview of red flags in title documents.
Documentation Issues
When conducting a thorough title search, your title company may find errors in the documentation pertaining to your real estate transaction. While seemingly minor, these errors can significantly delay or even prevent your closing if left unresolved. Examples of title documentation issues include:
- Missing signatures – When signatures are missing from public records, it can invalidate the transfer of ownership.
- Incorrect legal descriptions – An incorrect legal description on a property deed can cause uncertainty about ownership and lead to boundary disputes and a delayed closing.
- Improperly recorded documents – Errors in public records, such as clerical or filing mistakes, can create a defective deed and unexpected costs.
Ownership Concerns
Property ownership is often entangled by issues with estates and major life changes. In addition, title searches sometimes reveal deed-related conflicts. Common issues that can potentially lead to legal disputes if left unresolved include:
- Multiple deed recordings – Multiple deeds must be resolved to determine which one correctly represents the property’s ownership.
- Estate planning complications – Estate issues, such as incomplete beneficiary designations, incorrect asset titling, and unclear terms in joint ownership agreements, can prevent a smooth transfer of real estate to heirs.
- Divorce decree issues – Noncompliance with a divorce decree can lead to legal complications, so the title must be updated to reflect the decree’s ruling.
Public Record Discrepancies
Title searches may also reveal public recording errors that can result in significant defects on the property’s title. Conflicting, inaccurate, and unresolved information in public records can prevent or delay a clear transfer of ownership and could result in costly litigation or create future ownership disputes. Such defects include:
- Conflicting property information – Cases of conflicting property lines due to outdated surveys, as well as unclear descriptions, can lead to ownership disputes.
- Assessment mismatches – Incorrect property tax assessments, mistakes in property appraisals, and valuation errors can negatively impact both buyers and sellers.
Vanguard Leaves No Stone Unturned When Searching Title Documents
At Vanguard Title, our experienced staff utilizes the latest title and closing technologies to detect and help resolve any title defects and close your transaction accurately and on time. This includes a thorough check of all title-related documents to be sure they’re correct and up to date. When title defects are discovered, we partner with you and your real estate team to minimize stress and achieve a positive resolution.
Keep watching our blog for more information on “Title Troubles.” As always, we’re here to answer your questions and pave the way to a smooth, successful closing.