A person who is purchasing a property may be thinking about the neighborhood where it is located, the size of the lot and the price. He or she may not consider the type of title he or she will hold and how disputes can arise.
Types of title
The property’s title demonstrates that the purchaser has legal ownership of the property. Property purchasers should conduct a title search to check whether there are any liens, taxes or title issues that could interfere with the sale.
There are several common types of title. A tenancy in common has two or more individuals who hold real estate title jointly. The tenants each hold a title for their piece of the property.
A tenancy by entirety gives ownership to a married couple and if one spouse passes away, the title is transferred to the living spouse. In a joint tenancy, two or more people hold title together.
Common title disputes
Sometimes, a title search will uncover defects and it can lead to property disputes. For example, a clerical or filing error that affects the deed could be costly to correct, a property owner could be unaware of liens on the property that were placed there because of the previous owner’s failure to pay a debt or if documents regarding the property’s ownership are forged, it can cause a dispute about who owns the property.
It could also uncover unknown easements on the property or an unknown boundary dispute. If a property owner has questions about how to resolve a title dispute, an experienced real estate attorney can help.
