Common Title Issues that Could Cost You Time and Money

Wondering Why Exactly You Need a Title Insurance Policy?

Still confused about why you need a title insurance? If you’re preparing to buy a home, then you could get yourself into a real mess without proper title insurance. Look out for some common title issues.

Without a good title insurance company, this is what the sale might look like:

Illegal Deed

Is your title written for a home with an illegal deed? You might not actually own your home if this happens to you. Why? A forged or deed with false information does not withstand the scrutiny of those individuals who keep good public records. The legality of the original deed is well worth investigating if you wish to own your home.

Hidden Easement

Has your particular plot of land been “zoned” for other purposes? There’s a possibility that the property and home you are soon to possess will not actually exist solely your own stomping ground. In fact, some circumstances under an unknown easement force you to lend your land to the public for specified reasons. This would become an awful bother if you previously planned to transform your abode into a quiet, tranquil space.

False Impersonation of Previous Owner

Was that really the previous owner of the home? If the “seller” seemed a bit shifty during the discussion, there’s a possibility that person does not actually own the home. Real estate fraud and instances of a person falsely impersonating the previous owner are not uncommon. The best way to protect yourself is by working with a title insurance company that has the expertise to spot the fakes.

Misrecorded Information

You might not expect the records to be wrong, but it happens. Oftentimes, the title issue stems back from details about your home recorded on public records, which are not free from error. A good title insurance agent works with you to investigate any inconsistencies that surround the home and fix any title defects.

Power of Attorney Expired

What if they’re working with an expired power of attorney? A power of attorney is the document required for a person to make financial decisions in another’s stead. Yet these documents are only valid for a specified period of time, for instance, one year. The person needed to issue the power of attorney may not even be available, which could cost you a lot of extra time.

Dower and Curtesy Rights

Does the previous owner’s widowed spouse actually hold the rights to the property? Specific circumstances granted by dower or curtesy rights place a property in the hands of the previous owner’s spouse. That’s why it’s important to investigate the circumstances when a seller acts in place of the deceased. This could mean that the property is not actually eligible for sale.

Incorrect Details or Legal Description

Sometimes not all the facts are straight, and this could cost you the rights to your property. If something is not included or incorrect on the details of the deed or legal description, then you leave any additions open-ended for debate. This means that by not including a key detail or aspect of the property, others can challenge this claim later. A good title insurance company makes sure you’re covered.

Need help investigating common title issues?

Let us do the work for you. BNTC offers title insurance and real estate experts that can help you cover these issues. Give us a call today for a consultation.