While purchasing a new piece of property can be an exciting venture, you also have to watch out for various risks. The more you watch out for, the less likely you will make a mistake that may compromise your investment.
If the seller has unresolved problems with the property title, it can set back the purchase.
1. Liens
Among the most common title issues are liens. Businesses, banks, individuals and government entities place liens on property when the owner or seller has unpaid debts. The individual who places the lien has a legal claim unless the seller repays the debt. You must pay the debt if you purchase property with a lien.
2. Missing heirs
Sometimes, disputes occur when a property owner passes away before selling the home. Family members may appear and try to claim their inheritance or contest ownership. Other times, you may be about to close on the property when someone finds a will that dictates the property’s true owner.
3. Unclear property lines
Before you purchase a piece of property, you need to know your property lines. A neighbor may claim part of your property when there are no clear boundaries. Consider hiring a surveyor to help determine the property’s boundaries before purchasing.
Purchasing a new home or piece of property is a major investment. You must find out before closing on the property if there are issues with the title. Previous owners can also document titles illegally. For example, a deed may include a minor or married individual who claimed to be single.