A title opinion is a legal assessment provided by an attorney after reviewing public records related to a property’s ownership. It identifies defects, liens, easements, or ownership disputes that could affect the title. Obtaining a title opinion helps buyers confirm clear ownership and prevent future legal or financial complications.
Reasons to get a title opinion include:
- Liens/judgments/deeds of trust
- Invalid power of attorney
- Probate issues
- Easements/right-of-ways
- Chain of title
Why You Need a Title Opinion
Property ownership can be affected by unpaid liens, judgments, deeds of trust, invalid powers of attorney, probate disputes, easements, and chain of title issues. A thorough title search and opinion identify these risks, verify proper ownership transfers, and ensure buyers know of restrictions or claims before completing a purchase.
1. Liens/judgments/deeds of trust
Prior owners may have faced financial difficulties that led to liens or judgments being filed against their property. They may also have financed the property purchase through a deed of trust. If the property is sold without a lien, judgment, or deed of trust being paid, the buyer can remain responsible for the payment.
Some common examples include liens for:
- HOA fees
- Mechanics or construction liens
- Tax liens
Even if the former debt was from a previous owner, banks and financing companies can require the new owner to pay what is owed in order to have a clear title to the property.
2. Invalid power of attorney
People often grant others a power of attorney (POA), allowing the other person to sign legal documents for the grantor. POA can be very broad or limited in what it allows. A title search and opinion can confirm that the POA acted within the authority granted to them. It also verifies that the POA signed and endorsed the document correctly.
3. Probate issues
Whether a person dies with or without a will, issues often arise as to ownership of a deceased person’s property. Additionally, heirs of a deceased will often contest the validity of a will. A title opinion will reveal if a will has been or is in probate or if there is any litigation involving the ownership of the property by heirs claiming an interest in the property.
4. Easements/right-of-ways
Agencies, businesses, or groups have often been granted access through an easement to a homeowner’s property. Easements are often granted for indefinite periods of time, which may also prevent owners from using their land in certain ways. A title opinion can determine what easements exist on a piece of property and can allow a buyer to determine if these easements affect their intended use of the property.
5. Chain of title
A title search traces the title to a parcel of property back from the current owner to the previous owners. It also verifies that the person claiming to own the property actually owns it. Every time a property changes hands, documentation should be recorded that reflects this change of ownership.
A title search and opinion verify that these transactions were done correctly and that they conveyed full ownership to the property. For example, if a deed omitted one party’s signature in a conveyance, this person or their heirs could later come forward and claim an interest in the property. A title opinion will reflect this discrepancy and allow it to be corrected before the property is sold.
Trust Johnson, Murrell & Associates to Guide You Through the Process
These issues are essential to address. Fortunately, Johnson, Murrell & Associates offers knowledgeable guidance through every phase of the title opinion process.
Our team can:
- Advise on the best time to place your order
- Review prior title policies
- Evaluate new or existing surveys
- Assess sales contracts
Backed by experienced in-house real estate professionals, we provide accurate title opinions and uncover any potential problems before closing. Relying on our expertise helps prevent costly title disputes that could complicate or delay a purchase. With Johnson, Murrell & Associates, you gain confidence and peace of mind throughout your real estate transaction.
Property ownership can be impacted by unpaid liens, judgments, deeds of trust, probate disputes, easements, or title errors. A detailed title search and opinion identify these issues and confirm valid ownership. Johnson, Murrell & Associates can expertly guide buyers through this process to ensure a smooth and secure transaction.
Choosing Johnson, Murrell & Associates means choosing a team that knows how difficult the legal process can be. We take care of the heavy lifting, giving you peace of mind. For more information on how we can help with your case, call us at 865-453-1091 or contact us online.