Title defects have become a major cause for concern within the real estate market in recent years, “which some feel cause wrongful foreclosures and others feel contribute to stagnation of what would otherwise be a smooth transition of assets within the secondary market,” according to executives at Nationwide Title Clearing Inc.
NTC says several title-related issues are jeopardizing transactions. For example, NTC notes problems such as simple issues with wording in the document that does not comply with real estate standards for the area and failure to include the signature of a party that is necessary to the transaction, such as a spouse.
Other common problems surfacing are previous liens and other encumbrances that have not been removed; the title needs to be free of encumbrances to be marketable, according to NTC.
“Property records hold the key to ensuring a clear title conveyance and reducing the risk of buyback or inability to foreclose,” according to NTC.
To help combat potential title hang-ups, NTC says it’s added online ordering for property records to its website. The reports include tax status, current owner information, and assignment verification services.
“Our property report services are based on research conducted from actual land records and are accessible for any residential property nationwide,” says NTC CEO John Hillman.