When purchasing a property, ensuring a clear title is essential to avoid future legal and financial complications. A clear title confirms that the seller has the legal right to transfer ownership and that there are no hidden claims or disputes over the property.
Title defects, however, can cloud this clarity and create significant issues for hopeful home buyers and property investors. Here are some common title defects in New Jersey and how to address them:
Unpaid property taxes
Unpaid property taxes can become a lien on the property, meaning the government has a legal claim against the property for the unpaid amount. For prospective home buyers, this can complicate or even stall the property transfer. To avoid that, your attorney can make sure the previous owner pays all outstanding tax liens before closing the deal.
Outstanding mortgages
Old mortgages that were never discharged can affect the title by creating a cloud, indicating that a debt may still be owed on the property. Work with the previous lender to obtain discharge documents proving the mortgage has been paid off. An attorney can facilitate communication, handle the process and file the discharge documents with the county clerk’s office to clear the mortgage from the title officially.
Boundary disputes
Boundary disputes can occur due to unclear property descriptions, overlapping surveys or encroachments by neighboring properties. Sometimes, these disputes can lead to legal battles and affect property ownership. Before closing on a property, work with a professional surveyor to determine its boundaries accurately. Mediation or legal action can also resolve the dispute and obtain a clear determination of property boundaries.
You should feel at ease with your investment
Buying your new home shouldn’t come with unnecessary stress. You deserve the assurance that the title is clear and free from defects. Taking proactive steps today can save you from future legal and financial headaches.