Potential Title Issues Can Halt A Real Estate Sale
An experienced real estate investor is well aware that a title search on a piece of property is crucial, in terms of assessing its overall market value. Any kind of title defect can create problems for an investor/buyer, and in extreme cases, may even lead to one backing out of a potential deal (where possible). Some investors may think a search is not necessary, particularly if they are willing to purchase a property ‘as is,’ but without one, issues of liability can multiply.
Someone Else’s Interest
One of the most common issues that can appear when a title search is performed is discovering that another party has a valid interest in the property (other than the seller). If the additional party is related to the seller, it may be easier to reach an accord, but often, the other party with the possible ownership interest is someone who has either created a false deed or been deceived by one. This is less common with occupied properties than it is with pieces of undeveloped land, but it occurs regardless.
This is different from a deed that is simply ineffective – that is, a deed that would be valid but for a problem. For example, a deed signed by a minor, or by a spouse or roommate who lacked the authority to convey the property is ineffective, rather than fraudulent, unless intent to defraud can be shown. In theory, both can be handled by an action to quiet title, but different approaches are sometimes required – and this is one of the areas where an experienced attorney can be advantageous to have on your side.
Preceding Liens
The other most common issue with title to a property is the existence of one or more liens on the parcel. Liens can be placed on a piece of property by many different actors – the Internal Revenue Service (IRS) will do this frequently, as well as contractors or other service people if there is a dispute about the services rendered. One of the most difficult liens to eliminate is known as a judgment lien, and it is usually imposed on a person’s property to satisfy a court judgment.
If an investor is still interested in a piece of property, they have a couple of options in terms of proceeding forward. They may simply agree to pay off the lien, accepting it as part of the real estate transaction. They may dispute it with the lienholder, which can result in compromise (or a court proceeding), or they may refuse to go ahead with the sale until the seller satisfies the lien. Every case is different, but it is crucial for real estate investors to have legal help on their side.
Contact A Tampa Real Estate Attorney
Investing in Florida properties can be lucrative in the long term, but it is important to ensure that there are no major problems with a potential investment. If you have questions or concerns about a possible purchase or sale, a Tampa real estate attorney from the Seward Law Office can help to manage them effectively. Call our office today at 813-252-6789 to schedule a consultation.
