Title defects are a type of legal problem that arises whenever there is some question over the full and legitimate ownership of a particular property. If one of these issues arises, it can cause serious problems for any potential real estate transaction. Here are seven types of title defects you should watch out for in your real estate deal:
- Errors in public records
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- One of the more common problems that can arise comes from errors in public documents related to the property. If there is a discrepancy between public records and the deed, it can lead to issues that can stop a real estate deal from moving forward.
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- Undisclosed easements and covenants
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- Easements and covenants are types of non-possessory rights that other people have over your land, and all known easements are supposed to be disclosed prior to closing. If they are not, they can be considered title defects and lead to legal problems down the line.
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- Unpaid mortgages or liens
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- In theory, any mortgages or liens attached to a property should be resolved prior to a real estate transaction moving forward. This can be done by using the proceeds of the sale to pay off the remaining balance of the mortgage or lien, but still needs to be negotiated as part of the broader transaction.
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- Unpaid property taxes
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- This type of title defect is the simple result of a property owner getting behind on their taxes. Similar to dealing with an outstanding mortgage, the unpaid property taxes must be paid before the transaction can move ahead.
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- Disputes over boundaries or survey data
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- Every deed records the exact boundaries and survey data of the property, giving a detailed description of where it is located and how much space it takes up. However, it is possible for this seemingly banal information to cause problems if it comes into disputes, resulting in title defects that must be resolved.
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- Fraudulent or forged documents
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- This type of serious problem arises when the mortgage or financing documents related to a property turn out to be fraudulent or forged. This can bring into question whether the seller has legitimate ownership of the property, or raise questions about whether a buyer is legitimately able to complete the purchase.
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- Undisclosed heirs
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- This unusual type of defect arises when someone claims to have legitimate ownership over a property which was not disclosed in a real estate transaction. This may arise due to a number of situations, such as a previous owner failing to update their will before their death and leaving the house to one of their heirs.
For more than 50 years, the New York lawyers at Elovich and Adell have represented clients like you in real estate cases. Our attorneys, conveniently located in Long Beach, handle personal injury, real estate, commercial transactions, criminal defense, and labor and employment claims all across New York State. For a consultation, please call us at 516-432-6263 or visit our contact page for more information.
