When purchasing a property, a thorough title search is performed with public recording reviewed. That’s usually when a clerical error can be found. In this case, the title company will take steps to get the defect removed.
Some of the defects we find here at Lilly Title & Settlement are:
Some of the defects we find here at Lilly Title & Settlement are:
- Missing signatures
- Spelling errors such as names or street addresses
- Improper filing of the documents
- Missing information such as the spouse’s name
- Incorrect marital status
- Incorrect or incomplete legal description of the property
Although seemingly minor, these recording errors can result in significant defects on the property title. When that happens, it can prevent or delay a clear transfer of ownership. That can result in costly legal fees to obtain a positive resolution.
It can also create future potential ownership disputes. Worst case scenario, it can make the property unsellable, preventing the buyer from obtaining a loan to purchase it.
At Lilly Title & Settlement, we work to get these defects removed. If we cannot get them removed, the loan cannot close. Most of the time, we can get the errors corrected. However, it can take days or weeks to do so, and this pushes back the closing date.
Clearing Title Defects: Work with Your Local Clerk
Title defects such as the wrong square footage, missing signatures, a typo in the legal address can be corrected this way:
The clerk will then review all of the information you have submitted and will research the issue. You may have to complete forms to make an official correction of the error.
- Locating the public records at the clerk’s office. Address errors in-person with the clerk.
- Bring printed copies of the inaccurate public documents to the clerk’s office. Make sure the copies are the official copies from public records database.
- Provide documentation of the correct information. Show the clerk how it conflicts with the error.
The clerk will then review all of the information you have submitted and will research the issue. You may have to complete forms to make an official correction of the error.
Clearing Title Defects Through Legal Proceedings
When it becomes necessary, a title can be cleared through legal proceedings for existing title defects.
Once the defect has been identified, you now must evaluate your legal options for resolving the defect. Depending on the title defect, there could be multiple approaches to solving the legal dilemma.
For example, an owner could pursue a quiet title action; a legal route used to resolve disputes over ownership or the validity of a property title. This usually happens when there are conflicting claims over who owns the property.
This legal avenue will establish a clear and marketable title to the property. Another possibility would be a lawsuit against the party responsible for the damage.
Weighing Pros & Cons for Each Legal Option
No matter what option you choose, each avenue has its own advantages and disadvantages. That’s why it’s crucial to carefully weigh each option to determine the best course of action.
Sometimes, it’s more beneficial to explore alternative avenues to resolve the dispute such as arbitration or mediation. This can be a more cost-effective as well as streamlined approach as compared to litigation.
But this, too, depends on the willingness of all parties concerned to become fully engaged with the process to reach a mutually agreeable solution.
Typically, most title defects can be resolved without litigation or mediation.
Sometimes, it’s more beneficial to explore alternative avenues to resolve the dispute such as arbitration or mediation. This can be a more cost-effective as well as streamlined approach as compared to litigation.
But this, too, depends on the willingness of all parties concerned to become fully engaged with the process to reach a mutually agreeable solution.
Typically, most title defects can be resolved without litigation or mediation.
Why Title Insurance is Important
Securing a clear title through a thorough title search allows the new owner to take ownership free and clear. But a title search can’t find hidden liens or encumbrances that cloud the title.
That’s the role of homeowner’s title insurance. It protects homeowners from hidden encumbrances. For example, if a previous homeowner refinanced the mortgage but forgot to pay off the previous mortgage.
Without homeowner’s title insurance, the new buyer unknowingly inherits this unpaid debt. Title insurance safeguards homeowners from these kinds of legal situations.
Homeowner’s title insurance also protects against boundary disputes, forged documents, missing heirs or claims, and many other common title problems.
If you’re going to make the biggest investment of your life, be sure to fully protect your investment. The one-time fee for homeowner’s title insurance can save you thousands of dollars in legal fees if the claim to your property is disputed.
That’s the role of homeowner’s title insurance. It protects homeowners from hidden encumbrances. For example, if a previous homeowner refinanced the mortgage but forgot to pay off the previous mortgage.
Without homeowner’s title insurance, the new buyer unknowingly inherits this unpaid debt. Title insurance safeguards homeowners from these kinds of legal situations.
Homeowner’s title insurance also protects against boundary disputes, forged documents, missing heirs or claims, and many other common title problems.
If you’re going to make the biggest investment of your life, be sure to fully protect your investment. The one-time fee for homeowner’s title insurance can save you thousands of dollars in legal fees if the claim to your property is disputed.
Conclusion
Title defects due to recording errors can be corrected. Sometimes it’s simple and sometimes the process is lengthy, but it can be done.
Adding homeowner’s title insurance can also save you from a potential unknown legal situation.
When you’re ready to close on your new home, turn to Lilly Title & Settlement. We’ll thoroughly research the chain of title on your property and get you to closing smoothly and quickly.
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