In real estate transactions, title searches often uncover defects the sellers may not know about. While discovering liens, bankruptcies, or competing claims at the last minute can be stressful, it doesn’t necessarily have to derail the transaction. Top title companies have extensive expertise and resources, which they can use to remove clouds on a title and give you clear ownership of the property.

How to Resolve Common Title Issues

1. File a Quit-Claim Deed

Descendants of previous owners or co-owners of a trust may have an interest in the property, which you might be responsible for if the matter isn’t resolved before closing. If the title search detects a competing claim, the parties may be willing to sign a quit-claim deed, which essentially removes their claim on the property.

2. File a Release of Lien or Judgment

Many title issues are caused by lienholders who failed to record that the debt was satisfied. For instance, a contractor, local tax authority, or former spouse who was owed back child support may have filed a lien against the property. If the lienholder can be located, the title company may ask them to file a release of lien, which clears the title.

3. Buy Owner’s Title Insurance

Even the most thorough title search might miss unusual encumbrances on the title, which could cost you thousands of dollars when you try to sell the house. Owner’s Title insurance guarantees to the property owner that the title is clear, and typically would cover the cost of settling liens, judgments, or even more unusual situations like past acts of fraud.

If you’re buying your dream home, the professionals at All Points Title & Closing, Inc., will help ensure the deal goes through without a hitch. With a skilled attorney on staff and over 30 years of experience serving buyers throughout Southwest Ohio, their title search team will find and resolve issues before they disrupt your sale. Visit their website to access online forms, or call (513) 863-7600 to schedule an appointment. Follow them on Facebook for more tips and professional insights.