Can a Lawyer Help Resolve Title Issues Before Closing?

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.

What Are the Key Steps in a Real Estate Closing Process?

Before you can close on a property sale in Syracuse, both the buyer and the seller must agree on the terms of the sale. This involves negotiating the price, the closing date, and other conditions. After reaching an agreement, the parties put these terms into a written contract, which the buyer and the seller must both sign. This document then guides the rest of the real estate transaction and the closing process.

Due Diligence and Inspections

Conducting thorough due diligence involves performing title searches to confirm the seller legally owns the property and checking for any liens or encumbrances. Property inspections are also essential prior to closing. They involve a professional examining the property to identify any structural issues or needed repairs. The inspection gives the buyer a better understanding of the property’s condition before they finalize the purchase.

Securing Financing

Most buyers need to secure financing to purchase real estate. This usually means obtaining a mortgage from a bank or another lender. The financing process starts with the buyer submitting an application and providing their financial information. The lender then reviews this information to decide if the buyer qualifies for a loan. The approval process might include verifying the buyer’s income, credit history, and the property’s value.

Title Search and Insurance

A title search is an essential step in the real estate closing process. It involves examining public records to verify the seller’s right to transfer ownership. This search can reveal if there are any liens, unpaid taxes, or legal claims against the property. Buyers commonly purchase title insurance to protect against any undiscovered claims. This insurance provides financial protection if any covered title issues arise after buying the property.

Obtaining Necessary Approvals

In some real estate transactions, buyers must obtain approvals from various entities. For example, if the property is part of a condominium or homeowners’ association, the buyer might need approval from the association’s board. Additionally, local government bodies might need to approve certain aspects of the sale, especially if the property use is changing or if the buyer plans significant renovations. 

Final Walk-Through

Just before closing, the buyer will conduct a final walk-through to inspect the property one last time. During the walk-through, they check to ensure all agreed-upon conditions and repairs are complete and that no new issues have arisen. This inspection typically occurs a day or two before the closing day. 

Closing Day

On the closing day, the buyer and seller meet to finalize the sale of the property. This meeting often involves attorneys, real estate agents, and a representative from the lending institution. During this meeting, all parties sign the necessary documents, such as the deed and mortgage papers. The buyer completes the payment of the purchase price, often through a cashier’s check or wire transfer. Then, the seller hands over the keys to the property to finalize the transfer of the property’s ownership.

Post-Closing Responsibilities

After the closing, the buyer has several responsibilities. One of their primary tasks is to file the deed with the local county office. This filing officially records the buyer as the new property owner. The buyer must also transfer utilities into their name to maintain continuous service. Many new owners also rekey or change the property’s locks for added security.

The Role of a Real Estate Attorney

During the closing process, attorneys review and prepare legal documents, explain the implications of each document, and help clients understand their rights and responsibilities. They also coordinate with lenders, real estate agents, and other attorneys to ensure a smooth transaction. Having an attorney manage these details can prevent delays and allow for a quicker resolution of any issues that arise during the transaction.

Contact Our Syracuse Real Estate Closing Lawyer

If you need guidance through the real estate closing process in Syracuse, CDH Law PLLC can help. Contact us now to arrange your initial consultation and learn how we can assist you with your real estate needs.