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When you purchase a home, there is an entire legal process in place to transfer the title of the home, or the legal ownership rights of the home, to you. Evidence of title is reflected in legal documents called deeds. While this sounds like a very straightforward process, it is a lot more complicated than simply handing over your money and taking the keys. There are several cases when the title wouldn’t be clean, and therefore, you might not be the rightful owner to the property or there might be restrictions on your use of the property. While these instances are uncommon, they do happen. Here are three title defects that could occur:
Clearly, the rightful ownership of a home is not always black and white. Fortunately, a good title company and title insurance will protect you and your lender from any monetary loss due to possible title defects. For more information on title and title insurance visit our Investor Resources.