Are you buying a home and are told that you need to have a title search performed to make sure the property is free of problems? If so, you're likely wondering what problems can even come up that this process is required. Here are the issues that may be found in the title search for your pending property.
Unrecorded Lien Releases
When the previous owner paid off their mortgage, it is possible that the lender did not file the proper paperwork with the county to release the lien on the home. This is a simple process that requires some work to get the lender to process the lien release and clear the title on the home.
The home may have an estate related issue that needs to be resolved, such a previous owner passing away without an estate plan and the property was never properly passed on to the heirs. It's also possible that the probate process is not over with, and the sellers are trying to sell the home prematurely before it is actually theirs. These problems can take some time to resolve, but will prevent you from buying a home from someone that does not technically own it yet.
Judgements and Liens
Did the previous owner have a lien against their home, for things such as bankruptcy, back taxes, unpaid child support, and things of that nature? Those issues will need to be cleared up before a property can be sold to you, because someone else has a right to the property and is using the property as leverage to get the money that is owed to them. These issues can sometimes be worked around to get the title clean so you can close on the home, but it will take time to do so. Working with a title search company that has experience with these problems will know how to work with those entities that have a lien on the property.
There may be errors on the existing title that need to be resolved before a sale can be made. It can be something as simple as a land survey being done incorrectly, or lien releases that were not filed with the proper county. Title errors can be corrected, and real estate title search services know the common problems to look out for because they happen frequently over the years to home buyers and sellers.