thought of. However, even in the most extreme of cases, our job is to help resolve the issues and get the title to the property insurable. One common resolution tactic is called a quiet title action. This special legal proceeding is common with lender disputes, the death of an owner, cases of adverse possession, or other issues that must be resolved under a court order. Some common types of title deficits are: • A past mortgage had been paid in full, but unfortunately, the lender did not record the satisfaction with the county. The seller did not save any paperwork proving that they paid it off, and their mortgage company or title company went out of business. • A seller inherited a property from someone, and the paperwork was filed incorrectly for a legal transfer. They go to sell the property and find out about the issues that need to be resolved before they can sell. • Although it is common for properties to have certain easements like utilities, sewer, or water, the city may have an easement that goes through the property lines that could hinder a new buyer from adding on to the property. • There may be mechanic’s liens from previous work done on the property that had not been paid for. If not taken care of before the sale of the property, this lien would pass to the new buyer. • The property might have been part of a bankruptcy, and there are special sales requirements. • One that happens quite often: the seller was previously married but is now divorced. There is an outstanding marital lien on the property outlined in their divorce decree in which the other spouse is to receive a portion of the proceeds of the sale. If this is not taken care of before or at closing, that spouse still has an interest in the property and would have a claim against the property. • Any past owners' outstanding judgments or tax liens may have a right to an interest in the property. • A foreclosure, redemption, or short sale may have been processed incorrectly or with errors. • Sticky situations may also come up investigation, we discover that the seller has judgements on and an outstanding mechanic’s lien on the property. This information would be helpful for the agent before listing the property, as it would affect the sale. When someone is refinancing a property, the lender will use our services. We provide them a title commitment, complete the closing, and issue them a lender’s policy, ensuring that the lender is in first lien position. Who chooses the title company? Most consumers are not familiar with what a title company does, what title insurance is, or how important of a role we play. Although it is up to a homebuyer to choose a title company, homebuyers usually leave it up to their lender or real estate professional to determine as, most of the time, these professionals already have relationships with title companies they work with and trust. Because of this, typically, our clients come from lenders, real estate agents, and attorneys. In turn, their clients become our customers. What are some types of title defects? Each property and transaction are very different, and many issues could arise. These issues can make a real estate transaction an unpleasant experience for a buyer or seller and are often elements they were unaware of or would not have MY LEGAL LIFE 25
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