The process is certainly not fool proof. Some clerical errors are found during title searches, but small errors (like minor typos) may be easily missed and are among the most common real estate title issues.
What is an example of a defective title?
For example, a title defect could be an undisclosed heir of a previous owner suddenly appearing to make an ownership claim on your land. An encumbrance is a claim made upon the land by someone other than an alleged landowner.
Which of the following are common problems in title examinations?
- Public record errors. Problems can arise when there are mistakes in the property's deed, the legal document that spells out the details of ownership and specifics about the property.
- Unclear boundaries.
- Illegal deeds, forgery and fraud.
- Unknown or missing heirs.
What would cause a deed to be void?
The California Civil code states that a contract may be rescinded if it “was given by mistake, or obtained through duress, menace, fraud, or undue influence, exercised by or with the connivance of the party as to whom he rescinds, or of any other party to the contract jointly interested with such party.” (Civ.
What makes a bad title?
The term bad title refers to a legal document associated with an asset that doesn't grant ownership to the entity that holds the title. This may be because of legal and/or financial problems, including unsatisfied legal issues or even unpaid financial obligations, or even something as simple as a clerical error.
What are the disadvantages of a lien?
Liens have some disadvantages, such as: A lien applies only to the particular asset or property that it is attached to, so it does not protect other assets. A lien holder may not be able to recover the amount due if the asset or property attached to the lien is lost or damaged.