Title issues are rare, but they can create quite a headache when you encounter them. Most issues are uncovered during the home buying process when the closing attorney performs a title search. At this point, a closing date has already been set and both buyers and sellers have begun preparing for the big day. A moderate or major issue could result in a delay of that closing. If you encounter MA property title issues, here are a few ways that they can be resolved.
Direct Resolution of Minor Title Issues
Some title issues are relatively minor or easy to fix with a signed document by the appropriate parties. For example, if you purchased a portion of your neighbor’s land but it was not properly referenced in the title, you might be able to track down that old neighbor and have him sign off on the correction. If a mortgage was previously paid off but the lien was not released, that lender could provide the necessary release. Minor MA property title issues might not delay the closing if they are uncovered early enough in the process.
Title Insurance Company Services
If you have title insurance, it covers an extensive list of MA property title issues. Unknown title defects is why you purchase this insurance in the first place. It’s important to know that title insurance companies can not wave a magic wand to make a problem disappear. They have staff and attorneys to assist with you resolving the problem. This, however, can take time and will likely require a closing extension since you will need clean title to sell your home.
Quiet Title Action in Massachusetts
Direct resolution and title insurance company efforts may not always be successful. Some MA property title issues simply have no clear resolution. In these cases, court action may be necessary. Quiet title action is the process of asking the courts to resolve a title matter. The process is often used for very complicated and often time consuming cases. It’s the last resort when no other options are successful or possible. For these major issues, a closing extension is obviously required. However, given the uncertainty of the time frame for resolution, it’s likely that a buyer will back out. Sellers would attempt to sell and find a new buyer after everything is completed and resolved.
MA property title issues are never pleasant but they are certainly not hopeless. Ask your attorney for advice on your title issue and the best course of action to ensure clean title.
