Title Problems That Can Affect Your Real Estate Closing
A number of common titles issues can affect your future real estate closing and cause delays. In order to transfer the property from the seller to the buyer, the property must be free of any encumbrances which can include liens, easements, boundary disputes, errors in public records, and others.
About one third of real estate transactions will have extensive work required in order to clear the seller’s title. Many people are unaware that a South Florida residential real estate lawyer can legally conduct a title search and clear any title issues rather than a title company, often at an equal or lower cost and with better results.
Contractor’s liens are common
One of the most common types of title issues is a third party claiming that they have an interest in the property, and contractors are often one of those third parties. Contractor’s liens can be placed on a home when work is performed, such as a roofing project or garage door replacement. These liens can be used to ensure that the contractor is paid on time.
Under Florida law, a home cannot be sold if the contractor filed a public notice that work was performed on the property and places a lien on the home. This type of notice and lien can act as a major obstruction and prevent the transaction from closing until it is addressed through a lien release.
Deed restrictions can pass from one property owner to another and are written into the deed. For example, they can limit what can be built on a property or how the property can be used. Deed restrictions can have a number of causes such as homeowner’s associations creating the restriction, the home being a part of a historic neighborhood, or developer or prior owners placing restrictions in order to preserve the value of the property.
Common types of deed restrictions include limiting the size or number of additional rooms, materials used for construction, exterior paint colors, landscaping features, rental and home business rules, outdoor storage rules and more. It is important to fully review any deed restrictions before closing on your property of interest, and a thorough title search will uncover all of them.
These are just a few of the title issues that can arise during real estate closings. Mark Schecter at Schecter Law is an experienced South Florida residential real estate lawyer who can conduct your title search or help clear the title for any property you are looking to acquire or sell. Contact Schecter Law today at (954)-779-7009 for a consultation.