Deeds & Titles

Liens

Occasionally homeowners who are trying to sell their home are surprised to learn that their title is encumbered by a lien. There are several types of liens; the most common are mechanic's or contractor's liens.
The lien (or debt) must be paid to be cleared. If the owner prefers to challenge the lien, he can release it by posting a bond, pending adjudication.

In some types of liens, a title search may disclose claims against the property by an ex-spouse or long-ago heir of a former owner. A simple "quitclaim" deed may be used in these cases. By signing the deed, the person involved signs over whatever rights he or she might have, without laying any claim to the property.

Most real estate transactions involve at least some minor unresolved issues on the part of either the buyer or the seller. This is where an experienced Realtor can provide solutions to resolve the issues and conclude the sale.

Quitclaim Deed

Occasionally a seller will be surprised to learn that a contractor's or mechanic's lien must be paid on their house. To challenge such a lien, the buyer can release it by posting a bond pending adjudication. In other cases, a title search may disclose other claims against the property by an ex-spouse, past heir, or a former owner. A simple quitclaim deed may be used in such a case. A quitclaim deed allows the person involved to sign over whatever rights he or she may have had in the property without laying any claim to it.

If the seller will not be receiving the proceeds from the sale of their present home in time to close on a new home, it may be possible to arrange a swing loan. Most real estate transactions involve some hesitation and questions on the part of the seller and the buyer. The real estate agent can provide answers or alternatives so that matters can be resolved and the sale concluded.

The Title Search

The people who do title searches have an extremely important job. They must ensure that the sellers really own the property being sold and that all liens against the property are being paid off as a result of the sale.

If the seller has had financial difficulties, for instance, and didn't pay his bills, there may be judgments that must be satisfied on or before the closing. Someone in addition to the party who signed the sales agreement may have an interest in the property. If so, it will be necessary for that person to sign the sales agreement and the deed that transfers ownership to the new buyer. The preliminary title report will also show any easements that run with the property. In addition, the Title Company will go back many years, examining what is called the "chain of title". If you learn that the property you are buying has title problems, don't panic. Most of them are resolved easily and in plenty of time to avoid delays in the closing.