When you purchase a property, you expect everything to be in order. However, title defects can arise sometimes, causing major complications during your transaction. Title defects can include issues such as unpaid taxes, undisclosed heirs or even mistakes in public records. These problems can impact your ownership rights and must be resolved quickly. Here are four legal remedies available to address these issues.
Quiet title action
A quiet title action is a lawsuit filed to establish ownership of property, especially when there are disputes over who owns the property. By filing this lawsuit, you ask the court to “quiet” any challenges or claims to your title. Once the court rules in your favor, you will have clear ownership of your property.
Corrective deeds
Sometimes, title defects result from simple errors in documents, such as misspelled names or incorrect property descriptions. In such cases, a corrective deed can fix these mistakes. The original parties involved in the transaction must sign the corrective deed to make it valid. This document corrects the error and updates the record with the county clerk, making your title clear.
Title insurance claims
Title insurance protects you against financial loss from title defects. If you discover a defect, you can file a claim with your title insurance company. The company will investigate and either resolve the issue or compensate you for your loss. This is a quick and effective way to manage unexpected title problems.
Release of lien
If your title defect involves an unpaid lien, like a mortgage or tax lien, you must resolve it before you can have a clear title. Paying off the debt and obtaining a release of lien from the lienholder will remove this defect. The release of the lien must be recorded with the county clerk to update the public record.
Manage title defects with the help of a real estate lawyer
Title defects can be daunting. Knowing your legal options can help you address these issues and secure your property rights. In this complex situation, consulting with an experienced real estate attorney is crucial to manage the process efficiently. Whether you need to file a quiet title action, correct a deed, make a title insurance claim or obtain a release of lien, prompt action is essential to protecting your rights.