Understanding Title Risk: Safeguard Your Property Investment
A title risk refers to any potential hindrance that might impede the transfer of a property title from one owner to another. When purchasing a property, a buyer faces the risk of someone making a claim on the property’s title. Common title claims often arise from property line disputes or contested ownership interests.
Common Sources of Title Risk§
Property Line Disputes§
When buying land, the boundaries of the parcel define what is being purchased. However, neighboring landowners may dispute these boundaries for various legal reasons at any time. To avoid such disputes, it’s prudent for a land buyer to commission a survey before finalizing the sale.
Disputed Ownership Interest§
If a previous landowner did not fully sign off on the sale of the property, they could retain a legal claim. At any point in the future, this individual could make a claim on the property based on their past ownership. Conducting a thorough title survey can help identify and clear such potential claims.
Protecting Your Investment§
Commission a Title Survey§
Before purchasing property, ensure that a professional title survey is conducted. This survey can confirm the exact boundaries of the land and reveal any potential discrepancies or claims.
Title Insurance§
Investing in title insurance is another way to safeguard against title risk. This insurance will protect you against financial losses related to title claims and legal disputes.
By understanding and addressing potential title risks, you can make informed decisions and protect your real estate investments from unforeseen complications.
Related Terms: Title insurance, Property ownership, Real estate law, Boundary dispute, Legal claims.
