Tackling the Top 5 Common Title Problems — The Importance of Title Insurance
Buying a home is a life-changing event. It’s one of the most significant financial and emotional decisions a person can make. To ensure the homebuyer is adequately protected, it is essential to invest in title insurance and resolve any title issues before closing.
If you are in the process of purchasing a home, be aware of these common title issues before you sign on the dotted line.
5 Common Title Problems in the Home Buying Process
- Existing Liens
- Breaks in the Chain of Title
- Incorrect Legal Description
- Foreclosure Issues
- Construction Liens
Unpaid liens are one of the persistent challenges in the sale and purchase of homes across the country. From Homeowner Association fees to tax liens, any potential existing monetary responsibilities associated with a property need to be discovered with a thorough title search.
As a home gets passed down through inheritance or changes ownership with a new purchase, the chain of title is developed. If a link in the chain is broken or missing, that can cause a problem during closing. Title insurance can protect homebuyers from breaks, such as errors in documents or name omissions.
Every property has a recorded legal description in the local court system. It includes specific boundaries, home dimensions, and any permanent outbuilding on the property. Sometimes, an error is made in the legal description, and that can cause headaches at closing time. Even a simple typo of “east” rather than “west” can disrupt the home buying process. Title Insurance protects homeowners if this happens too.
Buying a foreclosed property is often a big deal for a homebuyer. But issues can be present that throw a wrench in the closing process. The lender may not have notified all parties, the title may not have been taken away from the original owner, or other chain of title issues. Working with an experienced title insurance agency is important to tackle foreclosure issues or other common title problems.
Home improvements occur every day. From adding on decks to constructing new screened-in porches, these projects are common before people sell their home. Unfortunately, some contractors don’t pay their suppliers in full — leaving an opening for a lien against the property itself. A thorough search should be done for any types of outstanding liens including construction-associated ones.
These top 5 common title problems occur in Florida and the rest of the country on a regular basis — causing potential homeowners stress on closing day, placing delays in the process, and inflicting increased, unnecessary financial pressures.
Work with a National Title Services Agency You Can Trust
A respected, expert title insurance agency places an emphasis on the financial interests and peace of mind of homebuyers with customized title insurance. Avoid these common title insurance problems by working with a great title insurance company as soon as possible in the home buying process.
Bay National Title Company is an independent, national title insurance agency offering a variety of title and settlement services, including REO and default services. Our expert team provides an unparalleled level of service, exhausting every method to ensure you receive the information you need to close on time.