How Can Claims Against a Home Be Resolved After a Title Search?

 Posted on July 15, 2024 in Real Estate

Purchasing a home is a major transaction and a significant investment, and a variety of issues need to be addressed during the closing process. One crucial step in the home-buying process is the title search, which can reveal potential claims against the property. Understanding what a title search entails, the types of claims it may uncover, and how to resolve these issues is crucial for buyers and sellers. An experienced Florida real estate attorney can help address these matters effectively.

What Is a Title Search?

During a residential real estate transaction, a detailed examination of public records related to a property's history will need to be performed. This process is conducted to verify the legal ownership of the property and to uncover any claims, liens, or other encumbrances that may affect the title. Typically, a title company or a real estate attorney performs the title search before the date of closing. The goal is to ensure that the buyer receives a clear and marketable title to the property.

Types of Claims Uncovered by a Title Search

Several types of claims or issues may be revealed during a title search. These can include:

• Liens: These are legal claims against the property for unpaid debts. Common liens include mortgage liens, tax liens, and mechanic's liens.

• Easements: An easement grants another party the right to use a portion of the property for a specific purpose, such as a utility company running power lines.

• Encroachments: These occur when a structure or improvement on one property extends onto another property.

• Judgments: Legal decisions against the property owner can result in liens that must be resolved before the property can be sold.

• Heir or probate issues: In cases where the property was inherited, there may be disputes among heirs or issues related to probate that can cloud the title.

Resolving Claims Against a Home

Addressing claims uncovered during a title search is crucial to ensure a clear title transfer. Here are some common ways to resolve these issues:

• Paying off liens: If the title search reveals liens against the property, the seller typically must pay them off before closing. This ensures that the buyer receives a clear title. Payment of liens can often be handled at the closing table, with the necessary funds disbursed directly to the lienholders.

• Negotiating easements: The buyer and seller, along with their attorneys, can negotiate the terms of an easement to ensure it does not negatively impact the property's value or the buyer's intended use.

• Addressing encroachments: These issues can often be resolved through agreements between property owners. This may involve adjusting property lines, creating new easements, or other mutually acceptable solutions.

• Clearing judgments: Judgments against the property must be resolved before the sale can proceed. This often involves paying the judgment amount or negotiating a settlement with the creditor.

• Handling heir or probate issues: Legal intervention may be required to clarify ownership and ensure that all parties with an interest in the property are accounted for. This can involve probate court proceedings or negotiated settlements among heirs.

• Title insurance: This form of insurance, which is typically purchased during the closing process, provides protection for both the buyer and the lender against any future claims or issues with the title. If a claim arises after the transaction is completed, the title insurance company will typically handle the legal defense and financial liability.

Contact Our Oakland Park, FL Real Estate Lawyer

Navigating the complexities of a title search and resolving claims against a home can be challenging. For assistance with these matters, contact the Broward County, FL real estate attorney at The Elliot Legal Group, P.A.. We can help ensure a smooth and successful property transaction, and we make sure issues are resolved while minimizing the financial impact on our clients. Contact us at 754-332-2101 to schedule a consultation.