Buying a home is probably the biggest purchase you’ll ever make. Purchasing the home without a clear title could result in a costly battle over rightful ownership. There are various things that could cause this sort of problem. Understanding the possible title issues when buying a home will allow you to realize how important it is to protect your title. Here are some common problems that can be avoided with property title protection.

Unknown Liens

Many properties have been passed through several owners. Sometimes the only way to tell if there is a lien on a home is by completing a title search. Whether it’s the person selling you the home or a previous owner, there’s always the possibility that not everyone has been entirely honest. If you purchase a home that has a lien against it, you will be inheriting the responsibility for it. Part of protecting a title is completing a title search before the property is purchased. This will allow you to find any liens or disputed ownership that might arise in the future.

Undiscovered Encumbrances

When you buy a home, it’s important to make sure that you are the sole owner of the property. While the person selling the home might have originally purchased it on their own, there could be third-party ownership due to a mortgage. This could result in a dispute over who actually owns the home. The buyer of the property and the company that provides the loan need to be protected should one of these situations occur. This type of protection can be provided through property title insurance. This will ensure that you are not out thousands of dollars due to a misunderstanding or someone intentionally deceiving you.

Boundary Disputes

When you buy a property, you might have plans for additions or renovations. This could become a problem if there is a boundary dispute. Even if you’ve seen multiple surveys, a neighbor might have another one that claims they own part of your property. If they’ve only now decided to claim that portion of land, they might try to get you to make changes to the property, possibly by tearing down something that already sits on that land. This is a problem that should be resolved before you complete the purchase but could come to your attention later on.

There are a number of problems that could arise after you buy a home. Some of these problems might affect the ownership of the property. Ensuring you have property title protection will help you avoid a significant loss due to a miscommunication or deceit.

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