Can A House Be Sold Without Clearing The Title?

by Jan 25, 2021

When buying or selling a house, some terms like liens, encroachments, and many more may come up. There may also be title problems, and as a seller or interested buyer, you must have an idea of what they’re about. For example, if you buy your house with your spouse and then divorce, it may be unclear if your ex still shares your title. If you’re selling the house, the buyer’s mortgage lender will want the title to be cleared. By doing this, no rivals can challenge the lender’s right to foreclose. 

Hence, you should buy your home on a clean slate, for safety reasons. At RC Property Group, LLC, we have met with clients facing this issue and have helped them address it in the best way. We believe we can help you too. Here are a few things you need to know on this subject:

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Title Search

At the time of closing the deal, your buyer’s agent or attorney will look for more information on your property. One of the ways they do this is by contacting a title insurance company for a title search. This title search provides information on past sales, liens, and transfers of titles on your home. If there are some clouds on your title, the firm will check if they can be cleared. If they can’t, you won’t be able to close the deal.
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Title Insurance

Title insurance policies protect the lender from financial loss if someone successfully takes title from the buyer. In the same way, a buyer can also take out a policy to provide the same protection the lender gets. That is, title insurance covers both the lender and buyer if there is a cloud and the title search fails to come up. 

However, if the title insurer finds a definite cloud, it may draft the policy to exclude it from coverage, thereby leaving the buyer unprotected. If this is revealed to the buyer, he may change his mind about buying your property. So, you should fix it as soon as possible.

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Deed

This is a legal document (signed) that grants either the lender or borrower rights over an asset. Sellers can transfer ownership of their properties to the potential buyer. If there are clouds, the buyer can hold the seller responsible. For some deeds, they come with a guarantee. When you sign over a house using a grant deed, it portrays that you have a clear title. If it happens that you have a cloud on the title, the buyer may change his mind about purchasing the property.

If you’re struggling to sell your home, it is advisable to consult RC Property Group, LLC. We buy houses in any condition and on your terms. We will offer the best price you can see on the market and you can make money just by selling your home to us.

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Buyer Beware

Even if you can sell your home without a clear title, you should get everything cleared up. Furthermore, if you’re looking for ways to sell your house and make a huge profit, you should reach out to us at RC Property Group, LLC. We will offer you irresistible cash and a quick close.

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