A clear title is key to a successful property purchase. However, during the title search, issues—known as title defects—can arise that need to be resolved before closing. These defects can range from unpaid taxes to boundary disputes or legal claims. While they may seem daunting, most title defects can be resolved with the right steps. Here’s how.

Common Title Defects:

Title defects typically fall into a few categories:

• Unpaid Liens: These are debts against the property, such as unpaid taxes, contractor fees, or home equity loans.
• Boundary Disputes: Conflicts over the exact boundaries of a property can arise, especially if there are overlapping surveys or unclear property lines.
• Errors in Public Records: Clerical errors or missing information in property records can create challenges during a sale.
• Unknown Heirs or Missing Signatures: If the property has a long history, it’s possible that an undisclosed heir may lay claim to it or that previous owners failed to sign key documents.

Steps to Resolve Title Defects:

1. Identify the Issue: The title search will pinpoint any defects. Once identified, work with your title company to fully understand the nature of the problem and whether it must be resolved before closing.
2. Pay Off Liens or Obtain a Release: For financial claims, the most common solution is to pay off outstanding debts, whether they be unpaid taxes, a mortgage, or a contractor’s lien. The seller must take action, either by settling the amount owed or negotiating with the creditor to release the lien before the sale can proceed.
3. Correct Errors in Public Records: Clerical errors, such as misspelled names or incorrect legal descriptions, can usually be resolved by filing corrective documents with the appropriate office. This may involve hiring a lawyer or contacting the entity that made the error.
4. Resolve Boundary Disputes: If there is a conflict over property boundaries, the buyer and seller can negotiate a solution, such as hiring a surveyor to clarify the boundaries or coming to an agreement with neighboring property owners. If the dispute can’t be settled amicably, legal action may be required, but most cases can be resolved without going to court.
5. Clear Unknown Heir Claims: When missing heirs or incomplete ownership histories are discovered, it may be necessary to go through probate to officially transfer ownership or get signed waivers from any heirs. This process can be time-consuming, but it’s critical for ensuring clear ownership.
6. Purchasing Title Insurance: Even after defects are resolved, purchasing title insurance adds another layer of protection, safeguarding you from any future claims that may arise unexpectedly. If certain defects can’t be cleared before closing but are not likely to cause issues, title insurance can help provide coverage against financial loss.

Why It’s Important to Resolve Title Defects

Resolving title defects before closing is essential to protecting your investment. These defects, if left unresolved, could lead to future legal challenges, disputes over property ownership, or even the loss of the property itself. By addressing these issues upfront, you ensure a smooth, stress-free closing process.

At All Seasons Title, we specialize in identifying and resolving title defects, ensuring that your real estate transaction is completed with confidence. Our experienced team will guide you through the process, making sure every title issue is handled efficiently so you can close on your property without worry.