The closing phase is the final step in a real estate sale, which is often lengthy and detailed. After signing a purchase and sale agreement, it can take a couple of months to reach the closing table to take over home ownership. Despite this being the final step, many documents, signatures, and fees.
Sadly, you may encounter many issues at closing, including property title challenges. Being aware of these issues is advantageous because you can deal with them from the start of the purchase process. You can avoid unnecessary headaches when you’re too deep into purchasing the property. Lawyers from a law firm in Virginia get into the details.
Warrenton real estate attorneys say boundary discrepancies are common obstacles to closing a deal. They entail inconsistencies between the property’s legal description and the property lines, leading to conflicts among neighbors or government entities. Boundary discrepancies can also occur due to irregularities in earlier surveys.
A chain of title is a document containing a record of all the property’s changes of ownership, usually maintained at the property registry. The record is a timeline that displays all the transactions relating to the property and details how it has transitioned from the first proprietor to the individual selling it to you.
Apart from the previous property owners, the chain of title also contains details of information affecting the property’s ownership. Examples include easements, voluntary and involuntary liens, vesting deeds, and financial documents.
Any mistakes in the chain of title documents can make it impossible for you to complete the property purchase. However, real estate lawyers in Warrenton highlight that this is an obstacle you can quickly resolve when closing. Seek legal counsel for insights on how best to approach the issue.
Among the documents that should appear in the chain of title are mortgage assignments. A mortgage assignment is a voluntary lien that indicates the transfer of a mortgage from the original borrower or lender to a third party. It represents the agreement between two parties to borrow funds and buy the home.
The document indicates the credit due on a property loan, primarily if the initial lender confers their interest to a new financier. Consequently, the lender becomes the authorized homeowner until the borrower pays the mortgage in full, after which the initial lender resumes ownership of the property. Irregularities in this document can derail the closing.
Fraud can happen on a property title, where a previous owner may have recorded their title illegally. Such a scenario can arise where the deed included an undocumented immigrant, a person of unsound mind, a minor, or a married person who falsely presented themselves as single.
In the case of fraud, a person might show up at the closing, claiming to be who they are not, for example, the seller’s spouse. The legal documents could be fabricated to claim the property ownership. Working with experienced legal experts can protect you from ordinary real estate scams that could make you pay off someone you’re not supposed to be paying.
An easement may permit a third party, such as a government entity or a neighbor, to enter or use all or part of the property. While this may not necessarily be harmful to the transaction, seek to uncover the impact of an easement on your right to use and enjoy the property.
In the case of encumbrance, it’s vital to check that no third parties hold a claim to all or part of the property, such as an option to purchase or a right of first refusal. These issues can be hard to tackle by yourself if you’re not conversant with real estate intricacies. Work closely with real estate lawyers in Warrenton to protect your rights.
Dealing with property title issues at closing can be overwhelming, having come all the way and expecting to take over your home. However, knowing what to do can make the process worthwhile, saving you time and money:
Property title issues arising at closing can derail the process, leaving you confused and unsure of the next step. Mentioned above are some common title issues you may encounter. Fortunately, you can identify and resolve the problems with the help of experienced real estate lawyers in Warrenton.
Ashwell & Ashwell is a reputable law firm with Warrenton. Our team of real estate attorneys understands that buying property is a complex financial and legal process. So, we dedicate ourselves to helping clients navigate the process smoothly. If you’re experiencing property title challenges, we can assist you in resolving the problem. Call us at (540) 991-9100 to schedule a consultation.
