How Errors in Public Records Can Affect Your Home's Title

Although the property you just purchased is new to you, it has a history, and sometimes, these histories can include unwanted baggage. During a real estate transaction's closing process, a title search on the property is completed to determine whether there are title defects that can have an effect on the purchase.

One common title issue buyers face when completing a title search is an error in public records. Humans aren't error-free, and a clerical or filing error regarding your property can have an effect on the deed and result in costs you may not have expected.

A title search is performed in order to determine if your home's title is clear, as well as to find any mistakes that could have been made in public records.

 An example of an error that could be fi led in public records is a description of the property that may appear to be accurate but isn't, like the square footage of the home. Since banks and lenders will only offer about 80-to-90 percent of a home's appraised value, if the home's actual square footage is different than what is listed on the documents, buyers may run into an issue with receiving the needed loan amount. As a result, buyers may be unable to obtain the loan and therefore unable to purchase the property.

Improperly filed legal documents, pending legal action or unreleased mortgages mishandled by public records can result in additional headaches for the buyers unless these issues are resolved. 

CFPB corrects error in TRID rule
Falls victim to the dreaded 'typographical' error

February 9, 2016

Ben Lane

It’s been four months since the implementation of the Consumer Financial Protection Bureau’s TILA-RESPA Integrated Disclosures rule in October shook up the housing industry, and many in the industry are still getting used to the new normal.

But, starting Wednesday, there’s a small portion of the TRID rule that will be changing, thanks to a “typographical error” in the supplementary information provided by the CFPB.

The change was spotted via TheHill.com, which listed several changes to the Federal Register that will be published on Wednesday.

One of those changes is to the CFPB’s TRID rule.

According to the CFPB’s addendum, the supplementary information to the TILA-RESPA Final Rule, which was released in 2013, contained a typographical error.

The addendum to the Federal Register and the TRID supplementary information corrects the error, which deals with the application of tolerances to property insurance premiums, property taxes, homeowner’s association dues, condominium fees, and cooperative fees.

According to the CFPB’s addendum, which can be read here, on page 79829 of Volume 78 of the Federal Register, the supplementary information states that “property insurance premiums, property taxes, homeowner’s association dues, condominium fees, and cooperative fees” are “subject to tolerances,” when it should read that those fees are “not subject to tolerances.”

The CFPB’s addendum states that the error, listing the fees as “subject to tolerances,” is inconsistent with the sentence that precedes it, which reads: “Property insurance premiums are included in the category of settlement charges not subject to a tolerance, whether or not the insurance provider is a lender affiliate”

Additionally, the CFPB addendum states that on page 79829 of the Federal Register, several lines will be revised from “are subject to tolerances whether or not they are placed into an escrow, impound, reserve, or similar account” to read “are not subject to tolerances whether or not they are placed into an escrow, impound, reserve, or similar account”.
Click here to read the CFPB addendum in full.

The changes go into effect upon publication in the Federal Register, which is scheduled to take place on Wednesday.