Buying a home is an exciting journey but has important steps to secure your investment. One critical step is searching the chain of title—a process that uncovers a property’s history and ensures no issues could affect your ownership. But what happens if the chain of title search reveals a problem? Let’s break it down.
What Is a Chain of Title Search?
A search of the chain of title reveals the legal ownership of a property and identifies any claims, liens, or issues that could impact the transfer of ownership. This process ensures that you, as the buyer, receive a clear title free of legal disputes or encumbrances.
Common Issues Found During a Chain of Title Search
Some of the issues that may be uncovered include:
- Liens: Outstanding debts, such as unpaid taxes or contractor fees, attached to the property.
- Ownership Disputes: Claims from heirs or previous owners questioning the current ownership.
- Easements: Rights granted to others to use a portion of the property, such as utility companies.
- Errors in Public Records: Mistakes in legal documents that could cloud the title.
Steps Taken When an Issue Is Found
If a chain of title search reveals a problem, don’t panic. Here’s what happens next:
1. Notify the Buyer and Seller: The title company will inform all parties involved about the issue. Transparency is key to addressing the problem quickly.
2. Resolve the Issue: Depending on the nature of the issue, here’s how it might be resolved:
- Liens: The seller must typically pay off any liens before or through the closing.
- Ownership Disputes: Legal steps may be taken to confirm rightful ownership.
- Easements: Easements are disclosed to the buyer and accepted as part of the purchase if they don’t hinder the use of the property.
- Errors in Public Records: The title company works to correct these errors before closing.
3. Rely on Title Insurance
In some cases, specific issues may not be resolvable before closing. This is where title insurance becomes invaluable. The Seller’s Owner’s Title Insurance (a policy that they received when they purchased the property) could assist in clearing title issues or covering the cost of correcting the chain of title.
How Cislo Title Helps You
At Cislo Title, we understand how important a smooth and secure real estate transaction is. Our experienced team:
Conducts thorough chain of title searches to identify and address issues early.
Works with all parties to resolve problems efficiently.
Provides comprehensive title insurance to protect your investment.
With over 30 years of experience serving Michigan, we’ve seen it all—and we’re here to ensure your home-buying process is worry-free. Let us handle the details so you can focus on what matters most—your new beginning.
