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Common Title Defects

Benchmark Title Agency LLC > Common Title Defects

Mortgages paid but not satisfied of record

If there were no other reason to purchase a fee title insurance policy this is it. Every real estate attorney in the state can attest to the problem of created by open mortgages. The issue usually arises when you are selling or refinancing your property. The new title company’s report shows the prior owners mortgage continues to encumber your premises even thought it was paid when you purchased the property. If you purchased a fee title policy, you simply provide a copy to your attorney or the new title company and they will resolve the issue for you. Without the policy in hand the issue can get complicated. Always retain the closing documents in a safe place.

Property descriptions

Property descriptions usually consist of what’s known as a metes and bounds description (courses and distances) or as lots on a filed map or both. Most properties in our area have well established descriptions. But, occasionally an error can occur in reproducing the description. Typographical errors are the most common description error. Most description errors can be resolved easily. Sometimes, however, a correction deed is required. With your fee title policy in hand the error is not your problem to correct.

Survey Issues and Encroachments

Surveys should be a prerequisite to purchasing a home. Knowing the state of facts of the property is an important aspect of the purchase. However, title companies do not require them. Some, but not all, lenders do require them. Check with your mortgage broker or lender.
Some survey related issues: if the neighbors detached garage or some other structure lies partially on your property.

Out of Possession

Misplaced fences can also cause an ‘out of possession’ issue. The issue arises when a fence is located one foot or more inside a property line in a way that prevents access by the owner to the area. The area between the fence and the actual property line can potentially be claimed by the adjoining owner under certain circumstances.

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