Guarding Your Property Title: Top 5 Common Title Problems You Should Know

A home or property is one the largest investments we ever make in our lifetime. There are so many problems that could put a property title at risk. Here at Electric Title, we want you–whether you’re a homebuyer or commercial buyer–to be prepared for anything that could arise.

There are many title issues that could cause a loss of your property, whether it’s a home or a business. “Hidden Hazards” are title issues not disclosed during a thorough search and review of public records. This may cause problems. Thankfully, there is a way to protect your investment.

For instance, consider a scenario where you’ve purchased a new home, and later discover that there’s an undisclosed lien on the property due to unpaid taxes by a previous owner. This unexpected title issue could potentially lead to legal disputes and financial losses. An owner’s title policy covers you and your heirs from financial loss caused by title issues, including situations like this. The title insurer will defend you against a claim made against the title of your property – all without expense to you. With the owner’s title policy, you pay a small one-time premium at closing in exchange for enormous protection.

Look out for these top 5 common title problems:

  • Forgery of deeds and records: Fraudulent individuals may attempt to forge property deeds and records, putting your title at risk.
  • Fraudulent Impersonation of the legal landowner: Some individuals may impersonate legal landowners, leading to potential disputes over property ownership.
  • Documents executed under false or expired power of attorney: Property documents signed under false or expired powers of attorney can lead to legal complications.
  • Undisclosed or unknown heirs: Hidden heirs can surface and claim ownership rights, causing title disputes.
  • Prior owners who did not divest themselves properly: Issues can arise when previous property owners did not transfer ownership correctly.

If you have, or suspect you have, any of these problems regarding your or your client’s property, reach out to your Electric Title professional today! We can talk you through the process and give you the correct steps in order to close. An owner’s title policy can protect you against title loss.

The owner’s title policy is effective for as long as the owner or their heirs own the property. It’s a small price to pay for a big peace of mind!