In real estate, titles are bundles of rights related to a piece of property wherein the owning party has either equitable interest or legal interest. Many startups have popped up in recent years that aim to simplify the title process.
Anyone planning on investing in property should consider acquiring title insurance, which will help pay for any defects in a building after the sale. Here are some of the most typical title issues property owners have to contend with.
When buying a property, there is always a possibility the previous owners did a subpar job paying the bills on time. Due to various mishaps, the previous owner's debt can fall onto the new owner, which can be rather cumbersome.
Public record errors
There are many levels a building sale has to go through. At any point, an employee can make a filing or clerical error, which causes numerous headaches for the new property owner.
You may now own a new property. However, an easement that remained undisclosed can prevent you from using the land as you like. Most of the time, issues with easements will not relate to finances, but it can still cause strain if a business or government agency can use the land in some way without your permission.
You want to know definitively where your property extends. That is why it is always a good idea to look at multiple surveys of the property to make sure everything is the same.
A property's chain of title may seem all right on the surface, but it is possible a prior deed exists made by a minor, undocumented immigrant or someone who was not of sound mind. If this is the case, it can call into question the validity of past and present deeds. All these reasons enforce the importance of due diligence before a property sale.