Protected Title Settlement For Free

A defective title is ownership of property or assets that cannot be legally transferred due to claims by someone else. While the seller has an obligation to present marketable title to real property, the buyer is also responsible for examining any title defects and giving notice of any defect to the seller.

A Certificate of Pending Litigation (?CPL?) is a notice to the public, registered on title, indicating that the interest or title to a specific piece of land is subject to a Court dispute. A CPL restrains all dealings with the land until the litigation is resolved.

A quitclaim deed is often used to cure a defect (a "cloud on the title") in the recorded history of a real estate title.

Title insurance protects lenders and buyers from financial loss due to defects in a title to a property.

Types of Title Insurance Policies Lender's Policy. If you've ever mortgaged a home, chances are you were required to purchase a title insurance policy. ... Owner's Policy. However, as a buyer, you also want to protect your investment -- and the ownership rights that come with it. ... Customs. ... Refinance Transactions.

The answer is a marketable title. Most contracts state that the seller is responsible for providing marketable title to the property. The term marketable means a title that has no defects that could carry over as a problem for the new owner at whatever time the new owner decides to sell.

The title and the property cannot be legally transferred until the title defect is resolved. The titleholder must take care of all and any issues. For example, if there are tax liens on the property, the homeowner must pay off outstanding taxes before going through with the sale.

The buyer has to exercise maximum diligence while purchasing the property and weed out ambiguities which might lead to a defective title. If the property is on unauthorized land belonging to a civic authority, then even if the property is registered, the title to the property remains defective.