With over 35 years of experience, we have seen it all when it comes to title issues. There are, however, ten common issues we see the most in South Louisiana.
Title issues are common on real estate transactions and can range from minor inconveniences to serious ownership risks. Lucky for you, we are in the business of protecting property rights and are here to help!
Now, what the heck even is a title issue? A title issue (or title cloud) refers to any problems with the ownership of a property. This could include discrepancies in title, liens on the property, or issues of ownership due to a previous owner. We check for title issues before closing to ensure you will be the rightful owner after the transaction.
We’ve been in business for over 35 years, and we have seen it all when it comes to title issues. There are, however, ten common issues we see the most in South Louisiana.
10 Common Title Issues:
Bond for Deed
- A type of property transaction in which the buyer agrees to make a series of installment payments to the seller over a specified time. When the bond for deed contract is signed, the buyer takes possession of the property. However, the title will not transfer until the buyer makes the final payment. Although it may seem straightforward, this arrangement often leads to complications that must be resolved before the property can be transferred to a new owner.
Exceptions
- When you purchase property, you are buying a physical asset as well as all of the legal rights associated with the property. Sometimes, you purchase property that is subject to the rights of others or subject to restrictions (e.g. rights of way, building restrictions, HOA restrictions, etc.).
Mobile Homes
- To be or not to be that is the…wait. Movable or immovable is the question. Immoveable – the mobile home attaches permanently to the land as a home structure. Moveable – the mobile home is simply a vehicle title. These differentiations can affect how a transaction moves forward.
Name Variations
- Marriage, divorce, or three middle names – name variations during a title search makes a difference in the chain of title. We research all variations to ensure that the property does not have any title clouds.
Open Mortgages
- When someone purchases a home using a mortgage, the lender places a lien on the property. The borrower must repay the loan, or they cannot typically sell or transfer the property until the loan is paid off. Once the loan is paid off, the lien is removed from the title and the property becomes free and clear. However, in some cases, liens are not cleared even after the loan has been paid off or not paid off at all.
Private Roads
- Typically an issue when dealing with large parcels of land or old, family land. The red flags to look for deal with road maintenance, specifications on who can use the road, and for what purpose.
Successions
- After a person passes away, his or her heirs must open a succession to sell the property they inherit. There are several ways to open succession in Louisiana, and many rules and guidelines to follow in order to complete one successfully. Failing to comply with state laws and procedures may cast doubt on the title and obscure property ownership.
Survey Issues
- A survey can be an important step in your due diligence period, especially when buying large tracts of land. Failing to complete a survey can hide many title clouds, including encroachments, permanent structures, and more.
Tax Sales
- If you fail to pay your property taxes, it can negatively impact your ownership, especially if the government sells the property at a tax sale. A tax sale has many moving parts and can create a very muddy trail of ownership of the property.
Trusts
- Many individuals transfer their property into trusts, which they can create in connection with a will or as a living trust. You must review trusts with great detail to ensure that the property’s title transfers correctly. Trusts issues can affect the ownership of the property and may require all possible owners to sign and agree to the details of a real estate transaction involving the property.
