Common Long Beach Island Real Estate Title Problems
Common Long Beach Island Real Estate Title ProblemsLong Beach Island New Jersey Real Estate
Title insurance, which is required by a lender, is designed to ensure ownership of the property if transferred in the correct manner. While a home may seem new to the buyer, every property has a history. A thorough title search helps to uncover defects that may be associated with the property. Title insurance can help provide protection from unknown title issues after you close on your new home. Therefore, understanding Long Beach Island real estate title problems is an essential step to completing your LBI real estate transaction.
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Common Long Beach Island Real Estate Title Problems
Title issues can arise from any number of circumstances. There are a few issues that can help to highlight the most common issues encountered. They are:
- Errors in public records
- Unknown liens
- Missing heirs from the estate
- Unknown easements or claims
If not properly handled, errors in public records can lead to a title nightmare. A property can be assigned to the wrong party, or a typographical error can lead to a deed or survey being improperly filed. Unknown liens can occur when a prior owner of a property did not satisfy debts or obligations. Even though the debt may have been associated with the prior owner, a bank, a financial institution, a contractor, etc. can place a lien on the property for unpaid debts, even after you close on the property. This is prevalent in a distressed or short sale. The previous owner clearly has financial issues and has been unable to satisfy their obligations. Another issue that can arise is if there is a missing heir from the estate or if an executor has not exercised their powers correctly for the estate. When a person passes away, the ownership of their home most likely will fall to their heirs or those named in their will. If the whereabouts of an heir is unknown at the time of death, other family members may contest the will. This can lead to a difficult situation to determine proper ownership. Also, it is possible an executor may not fulfill their obligations of consulting the current heirs to dispose of the property properly. This can lead to the heirs having a claim on the property, even if it is decades after the original owner passed away. This is most common when a property is left to an institution, such as a hospital or a church, where it can be difficult to determine proper ownership. The next issue is unknown easements or state claims can occur when a party has a claim on a portion of the home you are going to purchase. On Long Beach Island, this can happen under a number of circumstances, the most common of which can be a waterfront. If a property is held by one owner for an extended period of time, the tide line may have changed on the property, and new land may have formed. When this occurs, there can be some ambiguity as to who owns this new land: the property owner or the state.
How to Protect Your Purchase in the LBI New Jersey Real Estate Market
The best way to protect yourself and your investment is to ensure you have a reliable title company who can provide clear title to the property. This will be facilitated through a title search. The title company will investigate prior ownership, claims, liens, etc. The title company will be able to ensure and guarantee through the title policy that you have true and clear ownership of your investment. For more information about common Long Beach Island real estate title problems or the Long Beach Island real estate market in general, contact me and I will be happy to answer any questions.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
www.BuyLBI.com
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