Real estate business law focuses on commercial and residential transactions. Every property that is being sold requires its title be searched. A title search, also called a property title search involves obtaining information that document the history of a real estate property. This process is to determine the rightful owner of the property and regulations that may hinder the new owner from acquiring it.
When Common Problems can Hinder a Real Estate Transaction
In a perfect world, a title search process will not have any problems. The DFW title attorney will research the title and find everything they need. However, when situations occur such as a person dies or property is not properly transferred, it can cause one of 10 common problems. These problems can make the title search difficult and affect the new owner’s right to the property. For instance, human error such as a filing or clerical on a deed or survey can create a mistake that needs to be fixed prior to buying the property.
Tampering with the Deed or Title of a Property
Any time a property is purchased by an illegal immigrant, person of unsound mind or a minor is considered an illegal deed. It can also be an illegal deed if a buyer claims they are single, but they are actually married when they purchase the property. These things can make a deed enforceable and complicate ownership.
A deed or title could be forged. A forged document is a false, or fake, document. It is filed as a public record and obscures the rightful ownership. This mean the person on the deed never owned the property. It can prevent a buyer from completing the purchase. Property Disputes can Impact the Title Search. Property disputes can impact the title. For instance, a survey or boundary dispute is one common problem. A neighbor may claim to own a portion of the property or various surveys show different boundaries.
Surprise Events can Impact a Title Search
Sometimes the unknown that create problems for the new owners. One type of surprise event is an unknown lien. A lien against property means that a homeowner owes someone. Instead of suing them, the individual or company places a lien on the property to get paid when the property is sold. During a title search, an unknown lien may be found. This means that the lien must be resolved prior to sale.
Missing heirs is another surprise event. The prior owner may die and the property willed to another person. This is not known until the property is purchased. This means the heir would have to give up rights to the property for the person to buy it.
Another common problem is an undiscovered encumbrance. In this situation, a third party holds a claim to part or all of the property. They must give up their legal rights before the new owner can obtain the property.
A Title Search is a Way to Play it Safe
Common and uncommon issues can pop up during a title search. These issues may be covered by an owner’s title insurance policy. When buying a property, it is important to protect the investment with a title search.