What is a Title Defect?

Before closing on a home, there are a million little details that have to be sorted through – beyond what color to repaint the guest bathroom. With each of these details comes a set of consequences if not properly sorted. One of the many reasons to partner with a reputable and reliable title agency is so you can rest assured that your dream home is found to have a clear title – meaning there are no underlying problems that will arise as to who legally owns the land once you’ve already settled in and hung your curtains. When a person signs their name on the dotted line of a deed to a home, it’s absolutely crucial to have the assurance that the title is clear. If it’s found to have one of many possible defects, you risk threatening the legal ownership of your new home.

What is a Title Defect?

Defects can take many different shapes, but ultimately they mean there’s a problem with the title. This can be in the form of a lien, judgment, mortgage or other claim that threatens a person’s ownership. These threats could range from unpaid taxes to code violations. They could take the form of a dispute regarding property lines or a missing link in the previous chain of owners. Outside of these or a third party trying to claim ownership of the property, a bad title can also be the result of a clerical error – another reason to work with a title company with a strong reputation, a smart and trustworthy real estate agent, and to make sure you get title insurance when purchasing.

It’s important that the language used in the transaction documents is consistent and clear, that all legal parties sign the correct documents, that the papers get filed correctly and according to state laws, and much more. Defective, or “bad titles”, have some serious negative consequences, which is why this is such an important part of the home buying and selling process.

What Happens if a Title is Bad?

If a title is bad, it’s deemed useless or unmarketable. It can no longer be legally bought, sold or transferred until the issues are cleaned up and the title is made clear. If there are taxes against the property that remain unpaid, they must be paid. If there’s a survey dispute, it must be cleared. Any and all threats against the title must be alleviated before a transfer of title can be made. If a titleholder pursues selling the property with defects or problems against the title, they may be held responsible for any damages incurred and could even lose claim to the property altogether.

Title issues often come to surface when someone is trying to sell property and a title search is performed, but can even come to light after a new owner is living in the home. Title insurance will protect both the buyer and seller in the case a threat arises during or shortly after the closing transaction is complete.

There’s no better time to care about all the small details than when you’re purchasing or selling property! Fortunately, there are agencies dedicated to uncovering and clearing up title issues. If you’re looking to buy or sell in Brevard County, Supreme Title can provide some peace to the sometimes chaotic process of real estate transactions. Call today!

Supreme Title makes no representations or warranties with respect to the accuracy or completeness of the matters addressed. 

Please contact Supreme Title with questions you may have.

info@supremetitlellc.com  or reach us by phone at:  321-725-0115