When you start looking to buy a new home, it’s crucial to understand that the security of your property rights hinges on a clear title. Title defects can be a significant roadblock, potentially putting your ownership at risk.
Every prospective home buyer in Texas should have the peace of mind that comes with a secure investment in their future home, so understanding title defects and what you can do about them is crucial.
Common types of title defects
A title defect is a legal issue with the property’s documentation that can call into question your right to own, use or sell the home.
Some of the more common title defects include:
- Undisclosed liens
- Invalid documents due to forgeries, incapacity and other issues making agreements unenforceable
- Clerical errors
- Ownership claims by other parties
Title defects can halt sales, complicate refinancing and can even result in legal battles.
Prevention and resolution
The approach to handling title defects is simple: proactive prevention and swift resolution. A thorough title search is your first line of defense against potential defects. Too often, people fail to take this step, trusting that the title is free and clear.
You can also protect your investment by:
- Investing in title insurance: This will protect you from unforeseen title issues that may arise after purchase.
- Working with trusted professionals: Ensure your real estate agent and attorney are experienced and have a good track record.
- Fighting for your rights: Be aware of your legal rights and speak up if you discover or are concerned about a title defect.
Having a clear title not only secures your ownership, it also ensures that unresolved issues do not undermine your property’s value.
Peace of mind when buying a piece of property
The potential nightmare of title defects should not cloud the dream of homeownership. Understanding the gravity of these issues and taking steps to protect yourself is crucial. By being proactive about title defects, you can focus on what truly matters: making your house a home.