Why You Might Have To Cure A Property's Title
Posted on: 1 June 2023
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When a real estate lawyer tries to cure a title, they're asking the county court to invalidate older or conflicting claims on a property. The curing process exists because property owners often leave future owners with onerous issues that make using the property legally difficult or even impossible. If you're wondering why you might need to hire a real estate attorney to cure a title, here are three examples of what often leads to this situation.
Liens
Many parties can place liens on properties. The most common reason for a lien is that the homeowner took out a mortgage. When the bank puts up the mortgage money, it also places a lien on the property. Until it releases the lien, the bank reserves the right to retake the property if the owner defaults on the mortgage payments.
Problems can occur when a lender fails to take off the lien. This happens when banks go under. Also, banks sell mortgages to other parties, and those parties might not file the proper paperwork to assume control of the lien. Essentially, the lien falls down a memory hole even if the homeowner eventually pays the mortgage. Unfortunately, the lien continues to exist on the record. The next person who wants the title will have to ask the court to cure the record so they can take a clean title.
Mechanics liens are also common. A contractor may place ask a court to place a lien on the property for an unpaid construction, repair, or renovation bill. Courts also place liens on properties for unpaid taxes, back child support, and legal settlements or judgments.
Easements
An easement is a grant of usage rights. Typically, someone offers an easement to a third party. Suppose a neighbor wants to run a gravel road across your property so they can get in and out of where they live. You might grant them an easement in exchange for them paying to maintain the road and allowing you to use it.
If an easement is problematic, you have the right to cure it. For example, courts generally don't like perpetual easements. If a previous property owner left a neighbor with essentially an endless right to traverse the grounds, a later owner might ask the court to cure the problem.
Conflicting Ownership Claims
Finally, there could be problems with the chain of ownership. Two parties might have claims on the property. Perhaps you bought it from one of them. A court could cure the title and award you sole ownership of the property.
Contact a local real estate lawyer to learn more.