Buying or selling a home should be an exciting endeavor, but sometimes, the process can hit a roadblock. One of the most common causes of delays in real estate closings is title issues. The title establishes ownership rights to a property, which must be clear before a sale can go through. Unfortunately, many obstacles get in the way. However, understanding what these obstacles are and working with an experienced Indiana real estate attorney can save you the headache.
What are the most common title issues?
Title issues often boil down to two categories: fraud and mistakes. Here are five of the most common problems that can throw your real estate closing off track:
Public record errors
A simple mistake in the property deed, such as a misspelled name or an incorrect property description, can cause frustrating delays in a real estate transaction.
You must correct these clerical errors before the closing proceeds. Once identified, the seller works with a real estate attorney or title company to fix the mistake and re-file the document. While this may push back the closing date, addressing the issue promptly will help ensure the process stays on track.
Liens
A lien is a legal claim on a property, often placed due to unpaid debts or taxes. The lienholder retains an interest in the property, which can delay the sale until the seller clears the debt. The seller must pay off the debt in full to resolve this issue. If a name mix-up caused a lien to be mistakenly applied, the seller can petition the court to remove it by presenting evidence that the debt belongs to someone else. A title company and attorney can help streamline the process and ensure the lien is removed, allowing the sale to proceed smoothly.
Unclear boundaries
Unclear property boundaries can cause significant issues, especially if neighboring landowners claim part of the property in question. These disputes, often involving encroachment, must be settled before the title can transfer to the buyer. The most effective way to resolve this is by ordering a property survey, which clearly marks the boundaries and helps settle disputes. Once the boundaries are confirmed, both parties can sign an affidavit acknowledging the resolution. This will allow the sale to proceed smoothly.
Illegal deeds, forgery, and fraud
A title may be considered invalid if it was transferred illegally, such as when it involves a minor or a person of unsound mind. Fraud can also arise if someone forged documents or impersonated the rightful owner. To resolve illegal deed issues, an Indiana real estate attorney will need to review the transaction history and file the necessary legal paperwork to correct the title. In cases of fraud, legal action might be required to undo the fraudulent transfer and restore the rightful ownership of the property.
Unknown or missing heirs
When a property owner passes away without settling their estate, ownership disputes can arise. Missing heirs or a newly discovered will can delay the sale until the legal rights to the property are clarified. In these cases, probate court may be necessary to determine rightful ownership. Once the court identifies the heirs, or if an unknown will surfaces, the estate can be settled, and the title transfer can proceed. An Indiana real estate attorney can help move things along more efficiently.
Don't face your title issues alone. Get help from a skilled real estate attorney.
If you're facing title issues in Indianapolis, you need an experienced real estate attorney on your side to ensure your property transaction goes smoothly. Hocker Law, LLC has been helping clients throughout Indiana since 1993. We tackle a variety of real estate matters, including quiet title actions, liens, and property disputes.
Whether you're buying, selling, or dealing with a title complication, our dedicated attorneys will work hard to protect your rights and help you avoid delays that can derail your deal. To find out how we can help you, contact us online for a free consultation or call one of our law offices in Indianapolis or Greenwood.