Block Out Title Resolution For Free

A defective title is ownership of property or assets that cannot be legally transferred due to claims by someone else.The seller must attempt good faith efforts to cure defects in the title under reasonable circumstances, but one is not required to put in extraordinary efforts.

To resolve this type of title defect, the settlement agent must contact the lender who held the mortgage lien or title company who conducted the closing (in the case of a refinance), then file the appropriate paperwork with the court.

Examples of title defects include: Liens on the property for unpaid child or spousal support, repair work, or other debt. Unresolved boundary or property survey disputes. Undisclosed owners, missing heirs, or conflicting wills.

Many title issues can be resolved by filing one of three common documents: A quit claim deed removes an heir and clears up title among co-owners or spouses. A release of lien/judgment removes a paid mortgage or spousal or child support lien. A deed of reconveyance records payment of a mortgage under a deed of trust.

Many title issues can be resolved by filing one of three common documents: A quit claim deed removes an heir and clears up title among co-owners or spouses. A release of lien/judgment removes a paid mortgage or spousal or child support lien. A deed of reconveyance records payment of a mortgage under a deed of trust.

What Happens If the Contract Is Breached. Let's imagine that the seller fails to provide an abstract of title showing clear title to the property.This means that the damages to the party not in breach of contract will be for a set amount of money, which is often the amount of the buyer's deposit or earnest money.

The settlement agency will need to:Contact the lender holding that lien.Inform this payoff lender that the mortgage is being paid off.Secure an agreement from the payoff lender to release their claim to the property when they are paid the balance of the mortgage.May 25, 2020