Fredericksburg Office:P. (540) 368-5501
P. (804) 448-5808
Wednesday, May 3, 2017
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 fi ling
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 fi nd any mistakes that could have been made in public
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 fi led 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.