Closing on a home or other property is exciting, but it can take months to get there. Along the way, there are many legal and paperwork steps, and even one small mistake, like a missed lien or a simple filing error, can throw everything off. These problems take time and money to fix, and sometimes buyers even decide to back out of the deal.
Knowing the local system and fixing problems quickly is important when dealing with title issues in Missouri, where property records can be kept in either Abstract or Torrens form. Title problems can slow down or even stop a closing, and the buyer may walk away if the issue isn’t sorted out fast, so get in touch with an experienced Missouri real estate lawyer today.
What Does a “Title Defect” Mean When Buying Property?
A title defect is often called a “cloud” on the title. It means something is wrong in the property’s ownership history. These problems usually stop the property from being transferred. Title defects can happen in many ways, including:
- A title search may reveal boundary issues and easement disputes. These problems frequently involve someone having access to the property that was never properly recorded, such as a utility company that needs to reach its lines or a neighbor who needs a path through the land.
- Transferring a title can be challenging if there are unidentified heirs or inheritance issues. When someone passes away without leaving a will, a family member may simply move in and inherit the property. Complications arise because the title remains in the name of the deceased rather than the person attempting to sell it.
- Mistakes in public records can also cause problems. A person filing the paperwork might type in the wrong information, like listing the wrong property boundaries or leaving out details about buildings on the land. If the mistake is big, a new corrected deed may be needed to fix it.
- Unpaid liens can also cause trouble. If the owner didn’t pay property taxes, or a contractor filed a mechanic’s lien and never removed it, those debts stay attached to the property. They have to be cleared up before the property can be sold.
- A title search might show that someone sold the property without permission or that a signature on the deed was fake. If this happens, it can be very hard for a buyer to prove the fraud or find the real owner.
How to Solve Title Issues in Missouri
The due diligence period can make a messy title harder to deal with because both the buyer and seller must fix any problems before the deadline and be ready to close. A skilled real estate attorney can help clear up a title issue quickly by using one or more of the following tools:
Quiet Title
This is a civil court case used to clear up questions about who owns the property, such as liens, quitclaim deeds, or missing records. It can also fix problems caused by fraud, like fake signatures. After the quiet title case is finished, the person who filed it can take full ownership without worrying about title problems or an unknown heir trying to claim the property.
Title Insurance
Mortgage companies almost always require title insurance before a home is bought, because it protects them from title problems. However, title insurance can’t always save a sale if the title has serious issues, and buyers need their own policy to protect themselves. If the buyer doesn’t have title insurance, a real estate attorney may be able to work with the seller to get the buyer’s costs covered and keep the sale moving forward.
Lien Release
Liens can apply to just one owner when more than one person is listed on the deed, and sometimes a lien goes away on its own if the person it was attached to held the property in joint tenancy and has passed away. If a lien is causing a title problem, the seller should take care of it, or the buyer may choose to pay what’s owed to remove it. Before the sale can go through, an affidavit showing that the lien has been released must be filed with the registry of deeds.
Scrivener’s error
Sometimes the title has a simple mistake, like the owner’s name spelled wrong or a missing number in the address. Some small errors can be fixed directly at the recorder’s office, but others need an affidavit that explains what the correction should be.
Know Your Rights and Duties in Title Problems
The Missouri real estate lawyers at Wegmann Law Firm have been helping people with title problems, contracts, and fast-moving closings since 1947. We work with buyers, sellers, and lenders to find and fix title issues quickly so you don’t face expensive delays and your investment stays protected.
If you are dealing with a title problem or any other real estate issue, it is important to understand that getting help early can save you time, money, and stress. Our team is here to guide you and answer your questions.
To talk with a Missouri real estate lawyer at Wegmann Law Firm, call (636) 797-2665 or reach out online to schedule a legal consultation.
