The title to a property is the legal record of ownership. When you buy a home, you need to receive "clear title" — meaning no other person or entity has a competing claim to the property. Title issues can delay your closing, reduce the property value, or in the worst case, threaten your ownership after purchase.
A lien is a legal claim against a property, typically resulting from unpaid debts. Common liens include unpaid property taxes, contractor mechanic's liens, and judgments from lawsuits. These must be resolved before the property can transfer to a new owner.
Clerical mistakes in recorded documents — such as misspelled names, incorrect legal descriptions, or improperly recorded deeds — can cloud the title and require legal correction before closing.
An easement grants another party the right to use a portion of your property, such as a utility company's right to access underground lines. Some easements are not discovered until a thorough title search is performed and can affect how you use the property.
If the property's boundaries overlap with a neighbor's or if a fence or structure encroaches on the property line, these disputes must be resolved before closing. A current survey is essential to identify these issues.
The chain of title is the historical record of ownership transfers. If a previous transfer was not properly recorded — such as a missing heir's signature or an unrecorded deed — it creates a gap that must be legally resolved.
Your real estate attorney will order a comprehensive title search and review the results for any defects. Depending on the issue, your attorney may:
Title insurance protects you from financial loss if a title defect is discovered after closing. In New Jersey and New York, lenders require a lender's title insurance policy, but you should also purchase an owner's policy for your own protection. It is a one-time premium paid at closing that covers you for as long as you own the property.
Need legal help with your real estate transaction? Contact Kambo Law today to schedule a consultation. We serve clients throughout New Jersey and New York.
