When working with a title company, property buyers tend to assume that the home is officially theirs once they have finished signing the closing documents. While this is usually the case, the presence of a title defect could complicate this process. Here is what you should know about title defects.

What Are Title Defects?

Title defects cover a wide range of issues, all of which involve who owns the house. Often, these are the results of errors in public records. In other situations, a previous owner may have incurred liens on the property that weren’t disclosed; they may have also forged documents or illegally signed deeds that were used in a fraud attempt.

Typically, a title company will discover any title defects before the settlement date. They will then work with all parties in the transaction, including mortgage lenders and attorneys, to determine how to clear the title.

How Are Title Defects Fixed?

Fixing title defects is essential if you wish to avoid the invalidation of your new title. The title company will typically assist during this process. Many title defects can be addressed through a title search with the local recorder’s office, which will allow you to determine the true property owner.

Other situations may require determining that all liens have been paid off and properly documented. In some cases, however, a lawsuit may need to be filed to determine the lawful owner of the property. The exact procedures will vary depending on the type of defect you are dealing with.

For comprehensive closing services in Central Florida, turn to Scarab Title & Escrow Services, LLC. Based in New Port Richey, FL, this title agency helps both residential and commercial clients who are buying or selling real estate. Strict security protocols ensure that your information is kept safe while still saving time and money on the closing process. To learn more about what this title company can do for you, visit them online or call (727) 378-4553.