You bought the house. You’re making mortgage payments, but you may not own the home. Is that even possible?
Unfortunately, yes.
There are certain legal circumstances that could force you out of your home with very little legal recourse. So what could cause this to happen? Title defects.
Title defects—or problems with your legal right to own a property—can have serious consequences and threaten your home ownership. The good news is making a one-time purchase of title insurance can protect your property interests.
But first, let’s look at the five most common title defects.
Unfortunately, yes.
There are certain legal circumstances that could force you out of your home with very little legal recourse. So what could cause this to happen? Title defects.
Title defects—or problems with your legal right to own a property—can have serious consequences and threaten your home ownership. The good news is making a one-time purchase of title insurance can protect your property interests.
But first, let’s look at the five most common title defects.
Public Record Errors
If a clerical or filing error is made, the consequences could be devastating. Filing the wrong information could affect your survey or deed, causing financial hardship to get them resolved.
Missing Heirs
Heirs to the property that are not known at the time of closing can cause financial and legal problems. Family members may come forth to contest the will to secure rights to your property. Either of these scenarios can happen years after you purchase the property.
Unknown Liens
Previous owners of your property may not have been good bookkeepers or bill payers. If a former debt is not paid—even if it’s not yours—banks and other finance companies can place a lien on your property until the debt is paid.
Illegal Deeds
Your chain of title may appear to be sound, but it’s possible that the deed was made by an undocumented immigrant, someone of unsound mind, a minor, or someone who reported they were single but were actually married.
Forgeries
Sad to say but not everyone is honest. There are those who forge or fabricate public record documents, obscuring rightful ownership. Once this comes to light, your home ownership may be in jeopardy.
Undiscovered Encumbrances
If the previous property owner dies with no apparent heir, the state may step in and sell the assets, including the home. Years later, the deceased owner’s will could be made known, which means your legal right to the property may be in jeopardy.
Other Legal Possibilities
There are many other legal instances of title defects such as false impersonation of a prior owner, unknown easements, and boundary or survey disputes.
Purchasing owner’s title insurance can shield you from these problems. It doesn’t mean you’ll never encounter any of these legal problems, but it does protect you from the expense of attorneys’ fees and other costs to defend yourself.
If you decide to sell your home and the title search reveals a covered defect, homeowner’s title insurance protects you from financial loss. Best of all, title insurance protects you for as long as you own the property.
Don’t risk it! Let title insurance protect the largest investment you’ll most likely make in your lifetime. Don’t let common title defects haunt your home ownership.
When you ready to close on your new home, turn to Lilly Title & Settlement. We offer title insurance and real estate settlement closings right here in Staunton, VA. We're a woman-owned company obsessed with legal details!
Purchasing owner’s title insurance can shield you from these problems. It doesn’t mean you’ll never encounter any of these legal problems, but it does protect you from the expense of attorneys’ fees and other costs to defend yourself.
If you decide to sell your home and the title search reveals a covered defect, homeowner’s title insurance protects you from financial loss. Best of all, title insurance protects you for as long as you own the property.
Don’t risk it! Let title insurance protect the largest investment you’ll most likely make in your lifetime. Don’t let common title defects haunt your home ownership.
When you ready to close on your new home, turn to Lilly Title & Settlement. We offer title insurance and real estate settlement closings right here in Staunton, VA. We're a woman-owned company obsessed with legal details!
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