The title history for a property shows who owns it currently and who owned it previously. The county recorder’s office tracks transfers of ownership, liens and easements to protect all interested parties and limit ownership-related conflicts.
In some cases, there may still be questions about title records. Outside parties may claim to have an ownership interest in a property acquired by buyers recently. In some cases, people may live in their homes for years before a title dispute arises.
When there are questions about the title history for property, owners may be at risk of losing their equity and right of possession. The following are some of the scenarios that frequently result in title disputes.
Post-divorce sales
Married couples often buy homes together. They then have to address their shared properties when they divorce. It is common practice for one spouse to assume possession of the home and to compensate the other for their share of equity. In some cases, one spouse may not follow the proper procedures for listing the property or transferring their ownership interest to someone else during or after a divorce. Divorces can be the underlying cause of title disputes that put other people’s ownership interests at risk.
Probate-related sales
When people who own real property die, they may leave instructions regarding what happens to the home after their passing. In some cases, the personal representative of the estate may not follow the instructions provided in a will. Other times, they may fail to identify and notify beneficiaries or heirs who have an interest in the real property. Home sales that occur as part of the probate process may have an above-average risk of title issues in the future.
Sales involving fraudulent deeds
Another scenario that may give rise to title disputes involves one party misrepresenting their ownership interest in the property. People who do not have an interest in the property might still offer to sell their interest to others. They might use a quitclaim deed to transfer interest that they don’t technically have to buyers who expect to take possession of the property. Fraudulent transfers are relatively rare, but they have become a more pressing concern with the rise of deepfake videos and digital document signings.
Real property owners may face claims brought by outside parties who attempted to acquire a property in what may have been a fraudulent transaction. They may be at risk of litigation initiated by divorced individuals or disenfranchised heirs not given proper consideration during estate administration.
Should a title claim arise, homeowners often need help defending their right to the property and protecting their accumulated equity, and that’s okay. Conducting a thorough title review before acquiring property and getting support early if a title dispute arises can help people protect what may be one of their biggest lifetime investments.
