Owning a piece of real estate is a significant achievement. But as exciting as acquiring property might be, real estate title issues can ruin your investment dream.
Here are three common title issues that can, at best, delay or, at worst, ruin your real estate closing process.
1. An impersonation or fraudulent deed
It’s not uncommon for the supposed seller to use a common or similar name, or attempt to impersonate the property’s actual owner with the intention of scamming a would-be buyer. If this happens behind the actual owner’s back, you might end up losing your money to a scammer. Impersonations and fraud are common in transactions that involve vacant lands where the owner is far away and is completely unaware that their land is being sold to an unsuspecting buyer.
2. Property liens and/or judgments
A title can have different kinds of liens attached to it. One of the most common types of liens is judgment liens. If you buy a property that has a judgment lien on it, the debt in question will most often become your responsibility. As you can imagine, this is an unpleasant surprise that you do not want to encounter down the road.
3. Public record errors
Public records are entered and maintained by humans. And to err is human. Clerical errors and omissions on the deed and/or related documents can cause serious troubles during closing. For instance, an error on a mortgage or misspelled names can cause closing delays.
Protecting your investment
When you are out there shopping for a perfect real estate, one of the biggest questions you grapple with is whether “what you see is really what you are getting.” A comprehensive title search can help you steer clear of pitfalls that can ruin your real estate investment journey.