4 Common Problems Found In Title Searches [Knoxville Title Company FAQs]

May 23, 2019 | Buying A Home, Closing Process

When you think about buying a Knoxville home, there’s a lot on your mind. There’s the home inspection. Then, there’s getting through the mortgage process. And, then you have to worry about the actual move.

One thing that often gets overlooked is the role of the Knoxville title company.  One of the most important is completing a title search. A title search can reveal any potential problems that show up on the title of the property. It’s important that any issues be identified and death with prior to closing, so they don’t come back to haunt the new buyer down the road.

Here are 3 common problems that show up on Knoxville title searches.

Unreleased Liens

Unreleased liens are one of the most common problems things that are found on title searches by Knoxville title companies.

Unreleased liens come in a lot of different shapes and sizes. Sometimes it’s an old tax bill that wasn’t paid or a previous mortgage that wasn’t properly released.

Regardless, when those liens are attached to your property they must be resolved before you’re able to sell your home. So, if the previous owner forgot to pay their tax bill, you may be stuck footing the bill at closing. In other cases, it might take tracking down the previous mortgage company and securing a release.

Boundary Disputes

Boundary disputes are another thing that often shows up as a problem when the title search is conducted. Surveys aren’t often performed for Tennessee real estate transactions, so in older homes, it’s not uncommon to find boundary disputes.

When the title search is completed, you may find that there are parts of your land that you don’t really own. Or, if multiple surveys have been performed, you may find that some of the boundaries differ and your neighbor may be able to claim some of your lands as their own.

Unknown Encumbrances

Unknown encumbrances are another problem that shows up on title examinations by Knoxville title companies. Encumbrances are anything claim against a property that is not the owner. Encumbrances can often be overlooked and can interfere with an owner’s enjoyment of a property.

When you purchase a property, you may not be aware of any encumbrances on the property. You may not know that a third party holds a claim in the form of a mortgage or a lien. Or, that there are restrictions or covenants that limit your use and enjoyment of a property. The encumbrances could allow government agencies or businesses to utilize your property.

Errors In Public Records

Unfortunately, clerical or filing errors can be found in a title search. Errors in public records can be as small as errors in filing documents or failing to file documents are together.

Depending on the situation, errors in public records can range from very large to very small. Documents that are filed after closing could be missing important information, like part of a legal description. Or, documents can be filed incorrectly or not at all after closing.

Regardless, these errors have to be remedied in order to close on the sale of your home.

Can We Help You?

Title Group of Tennessee is here to help make buying or selling your home easy and stress-free. You can give us a call at 865-392-5801 or via email at Orders@TitleGroupofTN.Com.