Legal Title Issues

Legal Title Issues. Most brokered real estate deals include title insurance.  Different levels of title insurance coverage can be purchased.  The insurance includes a title search that reviews the public records of the property. The title search should reveal any title, lien or easement problems of record. The policy insures against loss due to certain title defects that didn’t turn up during the title search.

 However, finding unrecorded easements and liens can be a problem. If you are buying a subdivided property, the easements may only be listed on the title of the original home site and the subdivision plat.  An easement is a right to use property, such as a utility easement.  Prescriptive easements, established by use over time, are more likely to be found by inspection of the property and in tax records.

Liens are a charge against a property to satisfy the current owner’s debt. Unpaid tax liens, mechanics’ liens, and mortgages are examples. These should be paid or assumed by the seller.  The lien holder should release any claim against the property in writing.

Your attorney can advise you as to the seriousness of these issues. 
Contact Mark Mackin, Attorney at Law in Montana.