Purchasing any type of real estate is an exciting time that can be a marker of success. Whether for personal or business use, the purchase represents an investment in your future. Unfortunately, not every property is accompanied by a title that is free of defects. Experiencing a defective product could result in a loss of time in your purchasing process. Without the help of an Orange County title curative lawyer, you may be out of more than just time.
At Scheer Law Group, LLP, our attorneys understand that a defective title could mean delays in your business ventures and an increase in invested revenues. However, with our help, you could put your real estate venture back on track as we not only guide you through the process but also help you clear the title quickly and efficiently. Our experience and knowledge have helped clients for over 30 years. Let us help you through the curative process.
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:
Until the title is considered free and clear, an insurance company, mortgage lender, or financial institution cannot underwrite the transaction.
Titles and other real estate documents are susceptible to errors due to the sheer volume of paperwork associated with them. The purpose of the process is to ensure the title holder has the legal parameters to possess the property and has used it in the identified way according to the title.
Both commercial and residential property transactions could encounter issues with a title. Common problems that arise with a title include:
This is not an all-encompassing list of potential conflicts with a title but it does highlight some of the more common instances that could result in the need for curative title services.
The first step in the process of ensuring a title is clear and can be a part of the transaction is to run a title search. In a title search, all of the history will be 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 will then be reported to the title company.
In Orange County, CA, if any of the issues listed above or issues similar to them are uncovered, the title company will list 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 that include:
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.
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 the lien from the title, they will work with the title company to do the following:
If there is an issue that arises in the title that is not able to 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.
For business leaders, cloudy titles are particularly damaging to the everyday course of business. Hiring the right attorney who is able to handle the many different 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 work to 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 is the one that holds the lien on a property, you may have concerns about how to continue to recover the funds from a property that is being sold. The help of an experienced attorney, such as those from the Scheer Law Group, LLP, can help look after your interests through the sale process to ensure that the funds you are owed are recovered. If necessary, they can help you through any litigation.
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 takes the legal approach to resolve any defects in the chain of title. This type of litigation is quite common and often occurs when there is a death of the title owner. There may also be instances where squatters attempt to claim ownership of the property. Quiet title claims involve several key elements, including:
The plaintiff has the burden of proof through clear and convincing evidence.
Defective titles can impact you or your business in real estate transactions. From acquiring new property, to obtaining money owed to release a lien, or selling property that has a defective title, each circumstance can cause significant delays and cost an abundance of money. With the help of an experienced and knowledgeable attorney, you can keep your real estate transactions moving forward. Contact the Scheer Law Group, LLP today to find out how we can help.
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