There are many factors people take into consideration when they choose to buy real estate: the location, the price, any facilities or fixtures, and so on. However, if they are not careful, they may face unexpected problems from buying a property with a defective title. But what exactly are the dangers of having a defective title, and what can you do to protect yourself from title defects?
What is a Defective Title?
In simple terms, a property has a defective title when it has some kind of legal issue that makes it so the property cannot be legally sold or transferred to another person. These defects might be known to the seller when they try to sell the property, or they may only become apparent after a deeper investigation. Either way, they can be a major impediment to the successful completion of any real estate transaction.
Why Might a Property Have a Defective Title?
There are a number of potential issues that might arise, known collectively as title defects. These defects may include, but are not limited to:
- Unpaid mortgages or liens
- Unpaid property taxes
- Undisclosed easements or covenants
- Fraudulent or falsified documents
- Undisclosed heirs
- Errors in public records
- Disputes over boundaries or survey data
What Happens if a Property Has a Defective Title?
If you try to purchase a property with a defective title, what happens will depend on when exactly the defects are revealed. If they are discovered prior to the closing of the transaction, it may be possible to correct these defects, allowing the process to move forward. If the defect cannot be cured in a timely manner, the transaction may be cancelled instead. However, if they are only detected after the sale has gone through, it could lead to litigation that can stretch on for months or years.
What Should You Do?
The best time to address potential title defects is before the transaction goes through, which is why you should speak to a lawyer with experience handling real estate transactions. They can perform a title search to uncover potential defects, which can protect you from legal liability. They can also help you settle any disputes that occur during the negotiation process, and fight on your behalf if you find yourself going to court.
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.
