Receiving insurable title
When purchasing a property, always get title insurance. Title insurance protects you, the buyer. The title insurance company reviews all transactions on the property for several years. They check to be sure mortgages and liens were released and removed from the public record when they were paid. They also review that all previous owners signed the transfer documents when a sale was made. If there are future claims against the property then the title insurance company will be responsible for curing the problem at their expense.
There are other ways of correcting title errors or claims. It is called a Quiet Title Suit. Typically the owner of the property would file suit against anyone who claimed an interest in the property. That person would have the opportunity to defend their claim against the owner of the property in court. If the judge determines the claim is not justified, the court has resolved the dispute and quieted the title of the property. This process can take months and be relatively expensive depending on the complexity of the claim. An example would be a tax lien is purchased, the redemption period expires and the county issues a “collector’s deed” transferring ownership to the tax lien purchaser. The tax lien purchaser will have to quiet title on the property in order to be able to borrow against it or sell it by warranty deed.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125