Purchasing a home in Pennsylvania is an exciting milestone, but title issues can turn your dream into a costly nightmare. A clear title ensures you own your property free of legal complications. At Capstone Land Transfer, we’ve seen it all, and we’re here to help you navigate the process smoothly. Below, we outline five common title issues in Pennsylvania and practical steps to avoid them.
1. Liens on the Property
What It Is: A lien is a legal claim against a property, often due to unpaid debts like taxes, contractor fees (mechanic’s liens), or mortgages. In Pennsylvania, liens can prevent a clean transfer of ownership until resolved.
How to Avoid It:
- Order a Title Search: Before closing, hire a trusted title company like Capstone Land Transfer to conduct a thorough title search. This uncovers any existing liens.
- Request a Payoff Statement: If a lien is found, work with the seller to obtain payoff statements and ensure debts are cleared before closing.
Get Title Insurance: An owner’s title insurance policy protects you from undiscovered liens that may surface after purchase.
2. Errors in Public Records
What It Is: Mistakes in public records, such as incorrect names, addresses, or deed details, can cloud a title. In Pennsylvania, counties like Lancaster and Berks maintain deed records, but clerical errors happen.
How to Avoid It:
- Verify Records Early: Have your title company review public records during the title search to catch discrepancies.
- Correct Errors Promptly: If errors are found, work with your title company to file corrective documents with the county recorder’s office.
Trust Professionals: Capstone Land Transfer’s experienced team ensures accuracy by cross-checking records and resolving issues before they derail your closing.
3. Boundary and Survey Disputes
What It Is: Disagreements over property lines, such as a neighbor’s shed encroaching on your land, can lead to title disputes. In Pennsylvania, survey issues are common, especially in older neighborhoods or rural areas.
How to Avoid It:
- Get a Survey: Order a professional survey before closing to confirm property boundaries.
- Purchase Enhanced Title Insurance: Capstone offers enhanced title insurance policies that cover survey-related issues, like encroachments, not included in standard policies.
Review Endorsements: Ask about Endorsement 300, which protects lenders (and indirectly owners) from survey disputes, typically costing $50-$100.
4. Undisclosed Heirs or Ownership Claims
What It Is: After a property owner passes away, undisclosed heirs or co-owners may claim rights to the property, complicating the title. This is common in Pennsylvania when estates aren’t properly settled.
How to Avoid It:
- Conduct a Thorough Title Search: A comprehensive search by Capstone Land Transfer can reveal potential heirs or co-owners.
- Check Probate Records: Ensure the estate was properly probated, especially if the seller inherited the property.
- Secure Title Insurance: An owner’s policy safeguards you against unexpected claims from heirs discovered post-closing.
5. Restrictive Covenant Violations
What It Is: Restrictive covenants are rules governing property use, like bans on certain structures or land uses. Violations, such as unpermitted additions, can lead to title issues in Pennsylvania.
How to Avoid It:
- Review HOA or Covenant Rules: Check for any restrictive covenants tied to the property, especially in planned communities.
- Add Endorsement 100: This title insurance add-on, available through Capstone, protects against losses from covenant violations, typically costing $50-$150.
Inspect for Unpermitted Work: Work with your title company to verify permits for any improvements, like a finished basement or deck.
Why Choose Capstone Land Transfer?
Title issues can delay or derail your real estate transaction, but they don’t have to. At Capstone Land Transfer, we specialize in identifying and resolving title problems before they become costly. Our team conducts thorough title searches, offers enhanced title insurance options, and guides you through every step of the process. Want to estimate your title insurance costs? Try our title insurance calculator or explore our Ultimate Guide to Title Insurance in Pennsylvania for more insights. We’re also able to handle title insurance in Maryland.
Don’t let title issues catch you off guard. Contact Capstone Land Transfer today to ensure a smooth, secure closing. Our Pennsylvania-based experts are ready to protect your investment and give you peace of mind.
