Title Issues

Title Issues to Watch Out for at Closing

Title compnaies say that approximately one third of all real estate transactions have title issues that need to be reolved surface during the title search. Title search bring up everything associated with the property going back 50 years or more. Anything unresolved that comes up must be addressed before the property can be recorded.

Here are 3 common title issues that pop up often:

1) Mechanic Liens – These are liens where people such as contractors, plumbers or anyone who has performed labor to improve the home has not been paid for their services. The contractors will then place a lien on the home so that they are paid in full.

2) Bankruptcies – When someone buys a house the title company must ensure that any banckruptcy cases have been discharged or the house could get tied up from the bankruptcy process.

3) Divorces – Lien issues can arise from past due spousal support or child support or delinquent taxes that one spouse forgot to pay.