Orange County Title Curative Lawyer

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Orange County Title Curative Attorney

Skilled Orange County Title Curative Lawyer

Purchasing new real estate is an exciting time that can be a marker of success for a business owner. The purchase represents an investment in the future of your business. Unfortunately, not every property is accompanied by a title that is free of defects. A defective title could result in various problems in your purchasing process. Without the help of an Orange County title curative lawyer, you may be out of more than just time.

Defective Titles Could Delay Your Business Ventures

The attorneys at Scheer Law Group, LLP, understand that a defective title could mean delays in your business ventures and an inflated investment. However, with the help of Scheer Law Group, LLP, you could put your real estate venture back on track with guidance through the process of clearing the title quickly and efficiently. The experience and knowledge of Scheer Law Group, LLP, have helped banks and businesses for over 30 years.

What Does Title Curative Mean?

Title curative is just as it sounds, ensuring a title is cured of any number of defects. Without a clean title, the transfer of ownership cannot occur. Common blemishes on a title include:

A title record lists a person who does not have any ownership interest in the property.
The title lists liens against the property that may show conflict in property usage.
A party executes a deed that requires clarification of boundary lines or easements.

Until the title is considered free and clear, an insurance company, mortgage lender, or financial institution cannot underwrite the transaction.

Documents Are Susceptible to Errors

Titles and other real estate documents are susceptible to errors due to the sheer volume of paperwork involved. The purpose of the process is to ensure the title holder has the legal right to possess the property and has used it consistent with the title’s specifications.

What Are Common Title Curative Issues?

Both commercial and residential property transactions could encounter issues with a title. Common problems that arise with a title include:

Description of land. All land has jurisdictional requirements, such as property lines and easements. All land on a title should be described accurately.
Recordation. The registered documents should contain all information that is required by the state and county records.
Tax liens or mortgages. Liens and mortgages require a release prior to the transfer of the title. In the case of a lien, verifications must be established. For a mortgage, part of the property is eligible for release if the property experiences a takedown schedule or through consecutive partial releases.
Estate planning. In cases where property is part of a trust, a will, or other estate planning documentation, the testator’s intent must be sufficiently documented before property ownership is transferred.
Joint tenancies and life estates. If the property is part of a unique ownership circumstance, that must be conveyed adequately. This could include where someone has passed but remains included on a title.
Divorce decrees and marital interests. When spouses get divorced, their final decree should contain any legal information for appropriately transferring titles. A quitclaim deed can be acquired for clarifying purposes.
Company conveyances, corporations, partnerships, mergers, and more. Company executives must ensure that company conveyances are appropriately executed.

This is certainly not an all-encompassing list of potential conflicts with a real estate title, but it does highlight some of the more common instances that could require curative title services.

What Happens When Title Issues Are Uncovered?

It’s important to run a title search in order to ensure a title is clear and can be part of the transaction. In a title search, all of the history is thoroughly examined and checked to ensure it is free from errors. This is commonly referred to as creating the chain of title. The results of the title examination are then reported to the title company.

In Orange County, CA, if any of the issues listed above or similar issues are uncovered, the title company lists them on the title commitment documentation. The purpose of the title commitment is to acknowledge, through the insurance underwriting, the terms that will be met at the close of the transaction. There are three sections of a title commitment. These include:

Schedule A. This part of the commitment acknowledges the address of the property, the parcel ID number, the legal description of the property, the type of policy to be issued, and who the policy covers.
Requirements. This is the list of requirements that must be settled from the result, so the title search can be completed before the policy is issued or the transaction is completed. Examples of requirements could include clearing a lien.
Exceptions. This could include issues associated with the title that will not impact the close of the transaction but will need to be accepted by all parties. An easement could be an exception since there would be no way to resolve it.

Once the title commitment is issued, all parties involved will receive a copy, at which point the title company will work to clear the title by resolving the items listed under requirements. This period of time is referred to as the curative process.

How Are Title Issues Resolved?

There are several ways that a real estate attorney can help you work through the curative process. If, for example, a lien is revealed during the title search, it will likely be listed under the requirements section. To help resolve a lien on the title, they will work with the title company to do the following:

Contact the lender who currently holds the lien. It will likely not be the same as the lender that you are using, but it will be referred to as the payoff lender.
Work with the payoff lender to inform them that the mortgage is going to be paid off.
Reach an agreement with the payoff lender to release the lien when the balance of the mortgage has been paid.

If there is an issue that arises in the title that cannot be resolved, then that issue may be moved into the exceptions category. However, it will likely not be covered by any title insurance. Any remaining issues at the end of the curative period should either be resolved or moved into the exceptions category.

How Could a Cloudy Title Impact Your Business?

For business leaders, cloudy titles are particularly damaging to the everyday course of business. Hiring the right attorney who can handle the various property needs of your business means you need someone who is organized and can handle the many moving parts.

Contacting recorder’s offices, lenders, and private lien holders to verify the information and resolve issues that arise in order to get the title to the point that insurance can be appropriately issued is an enormous amount of work. In addition, if anyone files a claim against a title you own, then your attorney will be prepared and equipped to handle your case. Delays in curative titles can be costly to a business.

If your business holds the lien on a property, you may have concerns about how to recover the funds from the sale of that property. An experienced attorney, such as those at the Scheer Law Group, LLP, can protect your interests throughout the sale process to ensure the funds you are owed are recovered. If necessary, they can help you during any litigation.

What Is a Quiet Title Claim?

If the title in question has a dispute involving the rightful owner of the land, you may need to enter quiet title litigation. This process resolves any defects in the chain of title. This type of litigation is quite common and occurs when the title owner dies. There may also be instances where squatters attempt to claim ownership of the property. Quiet title claims involve several key elements, including:

The property description, including the real address or common designation
The plaintiff’s title, the determination of which will determine whether the quiet title is sought
Any adverse claims toward the title of the plaintiff. This could include any parties that are thought to be included in the title but are not; however, final determinations may not include them
The date a determination is sought
A prayer for the determination of the title of the plaintiff against adverse claims

The plaintiff has the burden of proof through clear and convincing evidence.