Did you Know? Title Defects
Did You Know that a title defect is a condition of land or its surrounding circumstances that invalidates, diminishes or negatively impacts real estate ownership in some way?
Common examples of title defects in Texas real estate applications include the following:
- Liens, including mechanic’s or materialman’s liens
- Landlock or impaired access to a public roadway
- Division of ownership (through deed, inheritance, etc.) and subsequent conveyance by less than all owners
- Invalid or defective documents, including those containing an improper legal description or with material defects (unsigned, un-notarized, not witnessed, etc)
- Undisclosed or unrecorded easements that are not visible and/or apparent
- Unsatisfied Judgments
- Unpaid Taxes or assessments, including homeowners’ association assessments
- Fraudulent documents and those whose execution was secured by deception
- Improperly recorded or indexed instruments, or those recorded in the public records but not discovered prior to closing
- Use restrictions, including restrictive covenants/CCRs that are not recorded or known to the purchaser
- Misplaced or unknown boundary issues, including shortages and encroachments
Many title defects are covered through a policy of title insurance, or can be easily corrected through legwork. Others are more serious, and significantly impact the utility or value of real estate. In the most severe cases, title defects can result in the loss of real property that a Buyer believes they purchased, or prevent use of the property for the Buyer’s intended purposes.
In some cases, Sellers purposely and fraudulently conceal known title defects. Other times, title defects should have been identified by a title examiner prior to closing, but are simply “missed.” Either of these situations may give rise to valid claims on the part of a Buyer of real estate in Texas.
If your real property in Texas suffers from a title defect that requires correction, or which may subject a Seller or title company to liability, you should contact an experienced real estate lawyer.