What are the most common issues found during a title search

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During a title search, various issues can arise that may complicate or derail a real estate transaction. Here are the most common problems identified in title searches:

  1. Unknown Liens: One of the most frequent issues encountered is the presence of undiscovered liens against the property. These can include unpaid taxes, home equity loans, or other financial obligations that could become the responsibility of the new owner if not resolved before closing.
  2. Errors in Public Records: Mistakes in public records, such as clerical errors, misspellings, or incorrect legal descriptions, can lead to significant complications. These errors may affect the validity of the title and can result in financial burdens when trying to rectify them.
  3. Missing Heirs: Situations involving missing or unknown heirs can complicate ownership claims. If a property owner dies without a clear will or if heirs are not properly accounted for, it can lead to disputes over ownership long after a sale has been completed.
  4. Illegal Deeds: Occasionally, previous deeds may have been executed under questionable circumstances, such as by individuals lacking mental capacity or proper authority. This can create challenges in enforcing prior ownership claims and complicate current ownership rights.
  5. Breaks in the Chain of Title: The chain of title must be continuous and unbroken for a property to have a clear title. Any missing documentation or errors in past transfers can create gaps that leave room for disputes over ownership.
  6. Unknown Easements and Encumbrances: Easements grant third parties rights to use portions of the property for specific purposes, which may not be disclosed during initial transactions. Discovering these after purchase can restrict how the new owner uses their property.
  7. Unpaid Taxes: Title searches often reveal unpaid property taxes that must be settled before a transaction can proceed. Failing to address these can lead to tax liens against the new owner.
  8. Foreclosure Issues: Errors in legal descriptions during foreclosure proceedings can also present challenges. If a property’s legal description is incorrect, it may create confusion regarding ownership and potentially invalidate the title.

By conducting thorough title searches and addressing these common issues proactively, buyers and sellers can mitigate risks associated with real estate transactions.

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