Prior to scheduling a closing date, the title of the property must be checked to ensure that it is clear with no encumbrances. While most closings go smoothly, it is not uncommon for title problems to crop that delay the real estate transaction. Being aware of these potential issues helps prepare you for all eventualities. More importantly, knowing about title problems that may delay closing allows you to better serve your real estate clients during a high stress period in their life.
Liens on Property
Property liens are one of the most common property issues that are encountered during closing. Liens against property are used by creditors to recover a debt owed by a person who owns real estate. These liens ensure that when the property is sold, the creditors receive the money they are owed. Homeowners’ associations, mechanics, and even utility companies can all place liens on a property, and sometimes an owner cannot even sell the property without first paying what is owed.
When a property that was inherited is sold, issues could arise when an unknown or previously missing heir presents themselves. These heirs can use their legal rights to the property to prevent or delay any potential sale. In other situations, a family member who was excluded from a will, but who would normally be considered an heir, may dispute the will in order to establish a right to the property, preventing the sale of the property at the last minute.
A property that is sold should have a survey or existing property record that shows boundary lines. If those established property lines are disputed by a neighbor or third-party, the sale could be delayed. No potential buyer wants to risk investing in a property that is partially owned by another person. Any type of dispute regarding an existing survey could lead to a closing delay or even cause a potential buyer to pull out of the transaction.
There are times when a real estate transaction comes to a complete halt because of a simple human error. A simple clerical error could affect the validity of an existing deed, survey, or lead to questions regarding the chain of ownership. Title searches and property records are reliant on meticulous documentation, so one seemingly small mistake could seriously jeopardize the sale of a commercial or residential property.
Get Legal Assistance
In most cases, there are ways to remedy a title problem. Fixing the issue may be time consuming, but with the assistance of a qualified real estate attorney, you can work through the most complicated title issues and not lose your sale. The team at Adam Law Group are able to assist you with all of your residential and commercial real estate needs. With a conveniently located Jacksonville, Florida location, we can answer any questions you might have and help you identify any potential title problems. Contact our office today to schedule an initial consultation so that we can begin discussing your needs.