Buying a home is one of the most significant financial investments you'll make in your lifetime. When you become a homeowner, you gain not only a place to call your own but also a title to the property. A title is a legal document that proves your ownership rights to the property. However, there are several common title problems that can arise, and understanding these issues is crucial to protect your investment and ensure a hassle-free homeownership experience.

In this blog, we'll identify 8 common title problems and why they are essential for homeowners to be aware of.

1. Errors in Public Records

Mistakes can happen even in official records. Errors in public records may include misspelled names, incorrect property descriptions, or missing information about past owners. These errors can lead to complications during the sale of your property or even disputes over ownership.

2. Fraud or Forgery

Title fraud or forgery occurs when someone unlawfully transfers or sells your property without your knowledge or consent. This fraudulent activity can result in legal battles, eviction, or financial losses. It is vital to safeguard your property's title against such activities.

3. Undiscovered Liens

Liens are legal claims on your property that arise due to unpaid debts or obligations. Undiscovered liens can lead to delays or issues when selling your home since these claims must be resolved before transferring ownership. Common types of liens include tax liens, mortgages, and mechanic liens from a contractor.

4. Illegal Deeds

Illegal deeds can arise when a property is transferred without proper authorization, such as through coercion, fraud, or without the legal owner's consent. These deeds are not legally binding, but they can create confusion and disputes over property ownership.

5. Undiscovered Wills or Missing Heirs

Undiscovered wills or missing heirs can complicate property ownership, especially when someone claims to have inherited the property through a will or as the legal heir. Legal challenges may arise if the rightful heirs or the existence of a valid will are in question.

6. Boundary or Survey Disputes

Boundary disputes occur when the property's boundaries are unclear or disputed by neighboring property owners. A professional survey can help resolve these issues, but they can still lead to legal conflicts and impact your property's value.

7. Unknown Easements or Undiscovered Encumbrances

Easements and encumbrances are legal rights or restrictions that affect the use of your property. Unknown or unwritten easements or undiscovered encumbrances can limit your property's value and ability to be transferred to a new owner, or lead to conflicts with neighbors or local regulations.

8. Unmarketable Title

An unmarketable title is one that has significant issues that make it difficult to sell the property to another party. If your title is unmarketable, you may struggle to find a buyer or obtain financing. Common reasons for an unmarketable title include unresolved title problems, unresolved liens, or legal disputes.

Why is This Important as a Homeowner?

Understanding these common title problems is crucial for homeowners because it directly affects the security of your investment, legal ownership, and use of your property. Awareness of potential title issues helps you take proactive steps to prevent or resolve them, safeguarding your property's value. Knowledge of title problems empowers you to defend your property rights and seek legal remedies, if necessary. When you decide to sell your property, addressing title problems in advance ensures a smoother and quicker sale process. A clear and marketable title provides peace of mind, allowing you to enjoy your home without worrying about potential disputes or complications.

To mitigate these title problems, it's advisable to work with a qualified title company, experienced Realtor, or an attorney during the home-buying and selling process. Carey Hughes Homes partners with First American Title Company of Oregon to conduct a thorough title search in advance of listing all homes. Title insurance is required in all home sales to protect buyers and sellers from financial loss due to title-related issues. Being informed and proactive about title problems is an essential aspect of responsible homeownership, ensuring that your investment remains secure and your homeownership journey is as stress-free as possible. We are pleased to offer our assistance. Call or email us if you have any related questions or seek guidance. Carey Hughes Homes is always ready to help!