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4 types of title defects in Tennessee

On Behalf of | May 31, 2024 | Real Estate

When considering buying a piece of real estate, there are many considerations you need to make. Real estate investments can be a great way of securing wealth, but if not done correctly, a single title defect can jeopardize the entire investment.

In Tennessee, title defects may lead to unnecessary legal complications, financial losses and delays in property transactions. They include the following.

1. Errors in public records

These are errors of clerical nature that occur during the recording or filing of documents. Such errors can include misspelled names, incorrect property descriptions or mistakes in the documentation of previous transactions. These inaccuracies can cloud the title, making it difficult to establish clear ownership and potentially leading to disputes or challenges that must be resolved before the property can be legally transferred.

2. Unknown liens

Unknown liens are financial claims placed against the property by creditors due to unpaid debts incurred by previous owners. These can include unpaid property taxes, contractor fees or mortgages. If these liens are not discovered and resolved before the purchase, the new owner could be held liable for these debts, resulting in unexpected financial burdens.

3. Boundary disputes

Boundary disputes arise when there are disagreements or uncertainties about the precise boundaries of the property. This can result from inaccurate surveys, conflicting property descriptions or encroachments by neighboring properties. Such disputes can lead to legal battles and affect the owner’s ability to fully utilize or sell the property.

4. Undisclosed heirs

Undisclosed heirs refer to individuals who may have a legal claim to the property but were not known or identified at the time of the previous owner’s death. If the property was sold without their knowledge or consent, these heirs could come forward to contest the ownership, potentially leading to lengthy legal disputes and the risk of losing the property.

Understanding and addressing these potential title defects is essential for ensuring a smooth and secure real estate transaction in Tennessee. Consider seeking legal guidance to help navigate these issues and resolve any defects that may arise.