Residential and commercial real estate transactions typically take weeks to complete. Even the fastest purchases usually require more than half a month to reach the closing table. When there is financing involved, the need for inspections and underwriting can lengthen the closing timeline.
In some cases, unexpected issues arise that could delay the closing or even force the cancellation of the transaction. Lenders financing purchases typically require title insurance coverage. Property buyers have to pay the insurance premium to protect the lender should an outside party have a viable claim to title after the transaction occurs.
Buyers usually also have the option of purchasing policies that protect their investments as well. In some cases, a transaction doesn’t even make it to the closing table because of a title controversy that prevents the company from issuing a policy.
How can those listing real property resolve title issues and move forward with a closing as scheduled?
By executing deeds
Especially when the property in question is residential real estate, there could be discrepancies in the county title records. Perhaps the current owner failed to remove a deceased spouse from title. Maybe they never recorded a deed after a divorce. In some cases, it may be possible to correct title issues relatively quickly by recording existing deeds or executing new ones. Deeds can remove non-owners from title and can help ensure that a property is eligible for a title insurance policy.
By asking for court review
In some cases, it may not be possible to have a prior owner execute a deed because they are impossible to contact or deceased. Other times, title issues might involve outdated easements, paid liens still showing up on record and conflicting legal descriptions. In such situations, simple deeds may not be enough to remedy the situation. Instead, the current owner may need to request a quiet title hearing. A civil court judge has the authority to review documentation and order the update or correction of title records. They can remove old owners and easements. They can order the deletion of fulfilled liens. They can even help correct issues with the legal description of a property that could trigger boundary disputes in the future.
Ideally, sellers conduct a cursory title review before listing their properties for sale. That way, they have an opportunity to take the necessary steps to correct any significant title issues before they might potentially disrupt a transaction. Getting support as soon as title issues arise can help real estate owners address matters that could prevent a closing from occurring. Real estate litigation initiated to correct title can be challenging, but correcting title records can help those who intend to sell, transfer or refinance their real property holdings.
