The act of buying a property without a title is prohibited in
many countries. It is also illegal to sell such a property to
unsuspecting buyers. Sometimes a title deed could be genuine but with
some errors that have to be identified and solved. How would you know
that your titles are completely genuine and faultless? Perhaps you have a
small business that processes house loans and you want to process the
title work quickly. The most appropriate way to do this is to outsource
title processing to another company.There are many liens that the
outsourced third party can identify on your behalf. Five of them are
discussed below.
Deed/mortgage issues - Common issues
surrounding deed or mortgage include forgery, signatures made by
mentally ill persons or minors, duress and fraud. If a deed was once
formed under the power of attorney after its termination, it is
considered legally void. If such a mortgage was signed while the grantor
was in bankruptcy, it is considered voidable. When you outsource title,
you permit an expert to find out if all these mortgage problems are
associated with your title.
Catastrophic happenings - If
you buy a house which shortly burns down, leaving only the land it is
built upon, a faulty title can be used to take everything away. Your
mortgager will be protected from such a loss via title insurance policy
and you will not. If you outsource title work today, your abstractors
will do all they can to identify possible errors applying in the past
chain of the title. Even if they do not find any problem, they might
advice you to buy Owners Policy title insurance for future protection.
Conflicting names - Some
deeds or mortgages are made by a person other than the property owner,
but with a similar name to his or hers. This is why it is imperative to
outsource title search to an expert who is aware of such complicated
things.
Conflicting matters regarding heirs - This problem
often arises with the wills. Let us say, for instance, that a will
testator had an heir who was born right after the implementation of his
will. Such an heir would clearly have a right to claim the whole
property or a portion of it regardless of its current owner. If you
happen to buy such a property, then you would have to share it with an
unknown heir.
Title transfer liens - If you buy a property
from an heir unknowingly, without ordering proper title search exercise,
you may be surprised to learn later that you are required to pay unpaid
federal estate taxes. Another possible scenario is where you buy an
asset belonging to a person who is assumed to be dead. If such a person
reappears in the future, you are likely to have title transfer liens.
This is why you should outsource title search to professional
abstractors because they know which title transfer issues are common.
The
work involved in processing titles is difficult and time consuming. To
improve your small mortgage company, you may want to look into how to outsource title
projects to another company that does this kind of work. Many borrowers
that will bring business to you do not know anything about real estate.
They come to you believing that your company will offer them the
assistance they require throughout the loan application process. If you
can outsource title to a reputable and reliable company, your borrowers
will be happy and might advertise your business without your knowledge.
