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One of the most troubling pieces of news that can arise during a pending real estate deal is a title issue. When a problem like this is discovered, it places a cloud on title, which means that there is a claim, encumbrance, or irregularity that may affect ownership of the property. Sellers don’t want this because it makes the property less appealing to potential buyers; buyers want to avoid a cloud on title because it may mean they don’t fully own the property.
Although title problems can be distressing, they need not derail the entire real estate transaction. Retaining legal counsel to take quick action will help resolve the issue to everyone’s benefit. Find out how the Syracuse residential real estate attorneys of Carden Dotzler Hammond, PLLC can positively address the matter.
Common Title Issues in Real Estate Deals
The title search or another stage of the real estate transaction may reveal one of several different problems with the title. They include:
- Liens: A previously unknown lien is any interest in the property that a creditor has for the property owner’s debt. Unpaid taxes, mortgages, HOA fees, and court judgments are examples.
- Errors with public records: The county clerk who records deeds and other property documents usually does not check these records for accuracy. A county employee or the person who drafted the document could have made a mistake.
- Other owners: There are several scenarios that could raise questions about whether other individuals have an ownership interest in the property. A spouse may not have signed the deed when the property was originally purchased, or a last will and testament might have left the property to someone besides the seller.
- Problems with deed signatures: When the property was conveyed to the current seller, its previous owner should have properly signed the deed. Improper signatures are those lacking authority or competency (e.g., the individual who signed the deed did not have sufficient mental capacity to do so).
- Boundary disputes: The owner may have a boundary dispute with an adjacent property owner. Two different surveys, for instance, may indicate conflicting boundary lines.
How a Syracuse Real Estate Attorney Can Help
If any of the above or some other title issue comes up, and you are a party to the pending transaction, you should reach out to an attorney. The seller of the property will particularly want to contact a lawyer since the issue could allow the potential buyer to back out of the deal. An attorney can assist in the following ways:
- Conduct a title search: It’s possible that an issue was identified without a title search, so your attorney can conduct a full search to make sure there are no other outstanding issues (and to better understand the current one).
- Conduct thorough research: A real estate lawyer can examine the deed and other property records, including those maintained at county offices, along with any records that a third party (e.g. creditor) claims may give that party an interest in the property.
- Legal research and analysis: Real estate laws and court decisions can be complex, but the good news is that there is likely a statute or case that addresses the specific issue by clarifying the parties’ respective rights and available relief.
- Assessing competing claims: Your attorney can advise you as to whether there is a valid claim concerning the property, considering the evidence and legal rules. If the claim is weak, your attorney will notify the party asserting it.
- Negotiation and resolution: Parties can resolve many title issues through negotiation and settlement out of court. They can reach a compromise that could include paying off an outstanding debt to lift a lien.
- Litigation: Ultimately, your attorney may have to take the matter to court to decide the issue. The judge can review the evidence and arguments and determine once and for all who legally owns the property.
Don’t Let Title Issues Stall Your Deal
Whether you are buying or selling property in Syracuse, a title issue could spell hassle and upend your real estate transaction. Don’t let it happen. If you have discovered a problem with the title, contact the real estate lawyers of CDH Law to handle it.