Real Estate Law and Title Work

Real Estate Law and Title Work:

Pujols Law Group PLLC is a seasoned real estate and title firm. We use our expertise in real estate law to ensure seamless property transactions for buyers, sellers, investors, and developers. Whether you're securing your dream home, dealing with a commercial property, or facing title disputes, I'm here to ensure your real estate investments are legally sound and hassle-free.

With a strong background in title examination, our team also addresses property ownership issues, ensuring clear and marketable titles for your properties. We are dedicated to simplifying the complexities of real estate, providing clarity, and safeguarding your interests. If you're seeking a trusted partner in your real estate ventures, we invite you to reach out for a consultation, so we can discuss your specific needs and goals. Together, we'll make your real estate transactions secure and successful.

What Does Title Mean?

In real estate transactions, the concept of "title" pertains to the ownership of real property, distinguishing it from a "deed." A deed, on the other hand, signifies a property owner's claim to a specific piece of real estate.

When someone possesses the title to a property, they have the legal ownership and the corresponding right to possess that property. An issue with the title's validity can lead to challenges in proving ownership, potentially creating hurdles in the resale process and affecting the property owner's rights to use their land.

Understanding Title in Real Estate

Prior to the closing of any real estate transaction, it is imperative for both the buyer and the lender to obtain a title report. The primary purpose of a title report is to uncover any encumbrances or issues related to the property's title.

Title companies meticulously examine public records to establish the legitimate owner of the property. These records contain a comprehensive history of every individual or entity that has held the title since the property's initial ownership.

Conducting a "chain of title search," title companies validate the rightful owner of the property and subsequently generate detailed reports based on their findings. These title reports instill confidence in new property owners, offering assurance as they proceed with their real estate investment.

The Title Report

A title report should contain the following:

Ownership of the property
The legal description of the property
Any assessments on the property
The existence of any covenants
The existence of any encroachments
The existence of any encumbrances

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Title searches, while valuable, are not foolproof.

They serve as a crucial safeguard for buyers, providing protection against any errors or defects that might surface after the real estate transaction has been finalized.

Title Insurance

Obtaining title insurance from a reputable title insurance company serves as a safeguard against potential title defects. Title insurance comes in various forms, with one common reason for buyers to secure a policy being the protection it offers in case the title report contains inaccuracies. The primary purpose of title insurance is to shield against undisclosed title defects, and there are two main categories: owner's policies and lender's policies. An owner's title insurance policy provides protection for the new homeowner, ensuring they are covered in the event of title defects. In contrast, a lender's title insurance policy is designed to protect the mortgage loan lender's interests. Typically, the borrower incurs a one-time fee for the lender's policy as part of the closing costs. In cases where title defects surface after the real estate transaction has concluded, title insurance steps in to cover the expenses associated with addressing these issues.

Buyer's Protections Against Title Defects

Homeowners have multiple avenues to safeguard themselves against potential title defects. While a title search is a standard part of the home-buying process, it may not uncover all title issues. To provide comprehensive protection against financial challenges stemming from undiscovered problems, homeowners can opt for title insurance. Real estate agents can be a valuable resource, offering recommendations for reputable title insurance providers. Alternatively, the American Land Title Association provides a search feature to help homeowners find accredited title insurance companies. Another proactive measure for guarding against title defects is to request a warranty deed from the seller. With a warranty deed, the previous owner guarantees that they possess a clear and unencumbered title, reassuring the buyer of a problem-free property transfer.

Easements

An easement signifies a commitment by the original or prior landowner to grant another party a right-of-way. An illustrative instance of an easement occurs when a property owner permits a neighbor to traverse the field behind their residence to reach a wooded area. Ideally, this commitment should be documented in the property deed from its inception and continue to be recognized with every successive sale. An alternative method for establishing an easement is through continuous usage that has not been formally documented in writing. This is commonly referred to as an "easement by prescription." Homeowners grappling with such matters should consult a real estate attorney who possesses a deep understanding of local regulations and can provide guidance.

Past Ownership Claims

A historical ownership challenge might emerge if there are undiscovered heirs, which often happens when the title isn't officially transferred during the probate proceedings. Another scenario for a prior ownership dispute may involve adverse possession. This legal concept comes into play when an individual exclusively maintains and uses a piece of land as their own for an extended duration, with their control over the property being evident to the community. In both cases, there remains the possibility of someone from the property's past returning to assert their claim to ownership.

Title Defects

Surprisingly, it's entirely feasible to make mortgage payments on a property for an extended period and still encounter the need for a clear title. This necessity can arise due to issues like a defective deed or improper recording. Several potential title defects, such as past ownership claims, liens, and easements, may be the culprits.

Liens

A lien represents a legal encumbrance on the property's title, established to fulfill a debt or obligation agreed upon by the involved parties. A mechanic's lien, for instance, serves to guarantee payment to a contractor who has provided services on the property. Various creditors have the ability to impose a lien on the property, encompassing scenarios like unpaid taxes, child support, or serving as collateral on a loan. When it comes to selling the property, it's imperative to address and satisfy any existing liens before finalizing the transaction.

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