What happens when you are selling property and find title issues? You’re ready to close the deal with a buyer, and a problem with the title gets in the way. You need to look into clearing title issues to keep things on track.
It can happen to even the most honest and straightforward of sellers. Even if you have held a title for decades, there is the potential for issues. There may have been a lien from the previous owner that went undetected. It could be a small typo in the description that you never noticed. Whatever the issue, you must resolve it before continuing with the sale.
Errors on the title or public records are not uncommon. It could be a misspelling of the owner’s name or a typo in the description. While these seem like minor errors, they can have significant implications. One solution for these types of errors is to file a corrective deed. A corrective deed is a type of filing to amend errors in a recorded deed.
The title search might uncover boundary disputes between yours and a neighboring property. For example, they might be encroaching on your property, or you might be encroaching on theirs. In these situations, the best solution is to contact the neighbor and negotiate a settlement. For example, one party could sell the portion of land in question to the other. You could then sign a quitclaim deed with the neighbor to establish a new boundary.
A lien against the title means a third party has a legal claim against the property as a result of a debt. There are many different types of liens. A lien can be a serious issue for a property sale. It is something you will need to clear. If you know the lien is legitimate and you owe the money, the best resolution is to pay it. You can negotiate with the lienholder in an attempt to settle the debt for less or arrange payments.
There is also a possibility that the lien is invalid. For example, you already settled the debt, but it’s still in the records. If you have proof the lien is invalid, you can resolve it with the lienholder. However, there is also the possibility you might need to take the issue to court.
Resolving title issues can be complicated. It can require various filings that all need to be correct. Working with your title company is the best way to clear these issues.
Do you need help with title services in Tennessee? Click here to contact the Title Group of Tennessee. Our team offers a complete range of title searches for buyers and sellers in Tennessee.
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