Encumbrances and Title Insurance in Fruita

Title Insurance Helps Avoid Problems With Encumbrances and Liens

Closing a deal is an important step for both your business and your customers. Making sure that all parties stay satisfied and can benefit productively from the transaction, is not always easy, but at Advanced Title Company, we take the load off your shoulders and help make it happen. We previously discussed liens and how this can affect your clients, but today we want to continue with the subject and provide further information on the topic.

What Are Encumbrances?

In our previous post, we discussed how liens and other debts stuck to the property should be prevented and dealt with as soon as possible. The liens, debts, and other allegations on a property can accumulate or even surpass the cost of the property. In many events, this is not the case, but staying well aware of the situation and being able to detect these encumbrances is crucial. Encumbrances are all those claims on the property including liens that reduce the value of the real estate.

 Find Encumbrances on Time and Best Deal With Them With Advanced Title Company

There may be cases with several encumbrances and this can complicate things. Thoroughly investigating and making sure that the property is in good standing will alleviate many future problems for the new buyer and the parties involved. That is why at Advanced Title Company we are proud to be such an efficient and effective company in title searches and title insurance, securing your interests and those of your clients, contact us now and learn more about our complete services.

Minor Debts Can Be Taken Care of More Easily If Detected on Time

There are small liens and there are larger ones, smaller liens are usually lower amounts of money that are owned and must be liquidated when the house is sold. For example, there may be a 1,000 fee owed for the lack of monthly payments that are mandatory of a planned unit development that hired internal security. It may also be a few monthly child support payments that the owner has failed to fulfill and the property may have these attached. In these cases, the debts will likely come up and a settlement can be reached, either the owner will pay those off beforehand or the price of the house will reduce and those payments that are attached to the property will be deducted.

Higher Liens Can Become More Complicated to Deal With If Not Discovered on Time

When the debts or liens have escalated and reach higher amounts it may become a more complicated. The person selling the home may be the owner but if there is a large debt or a substantial amount of taxes owed on the property the property may no longer belong to the owner but to the state or any other financial institution to whom the money on the property is owed. Also, if the property was an inheritance and the person who inherited sells it to you but later down the line, another relative proves that the property was actually intended to be given to him instead of the other relative that sold it to you, that person can show up with an issue from a judge, to claim it, and now you, as the new owners are either left without a home or with another debt to also pay the ¨real¨ owner.

Preventing Unwanted Encumbrances From Showing up After

These previous situations are only a few of the many types of events that can be faced but that are usually prevented, by title searches in which an extensive and very detailed search is made to find out if there are any debts, defects or other types of inconsistencies with the title of the property. Helping your clients make safe investments will allow your business to grow quickly and more effectively in a shorter period of time. Commercial title insurance can also allow you to be better prepared for more complex situations, as our expertise can bring you better solutions and more desirable options in difficult transactions.

The Right Agency for the Best Commercial Title Insurance

As we have mentioned, there are several procedures, and steps that can get a bit messy or complicated depending on the situation. Title problems, liens, and bad paperwork, among other things, can create an unwanted situation. Nevertheless, most can be prevented, and dealt with beforehand with the help of a trustworthy title company such as ours.  Allow your clients to invest wisely in the right property and offer better protection with Advanced Title Company, call us today at (970) 255-7677.