Kent Rayborn Business Consultant North American Title Company krayborn@nat.com

Common Problems Errors in public records Unknown liens Illegal deeds Missing heirs Forgeries Undiscovered encumbrances Unknown easements Boundary disputes Undiscovered will False impersonation

Unknown Mechanic’s Liens Investor finds smoking deal on off-market house All cash transaction Deed – signed and filed Renovations – new kitchen, windows and flooring Flip for quick profit Roofing contractor – demand of payment letter

Unknown Mechanic’s Liens (continued) Mechanic’s lien – unpaid balance of $6,000 Didn’t close with title company, thus no owner’s title policy Satisfaction of mechanic’s lien in order to resale Investor makes $6,000 less profit If closed with a title company, the original seller would have to pay the mechanic’s lien

Easement…What Easement? Family purchases house Several years later adds a big wrap-around porch Local power company needs access to underground cables Cables are directly under the recently added porch Damage caused during access of cables Porch renovation and redesign If closed with a title company they would have been aware of the easement

Did Everybody Sign the Deed? Young couple buys FSBO starter home Seller finances the transaction and signs deed Years later, time to move up to larger house New buyer uses bank financing and closing with a title company Ex-wife is on original title and still official owner If a title company had been used on the first transaction, the ex-wife would have been discovered

The Missing Brother Homeowner is widow with seven sons One of her sons is boat captain No contact for years Presumed lost at sea Declared legally dead Widow passes and six sons inherit house Sons sell house to settle the estate

The Missing Brother (continued) Several years later the missing sea captain son returns from the dead He wasn’t dead, had moved to start a new life elsewhere The boat captain son files a lawsuit against the new homeowners A title company was used for the sale and an owner’s policy issued Homeowners were protected Homeowners filed claim through title insurance Homeowners were able to keep the house at no additional expense Boat captain son received his share of house sale, paid by title insurance

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