The recent real estate boom in Texas has be cited as the cause for title problems in Texas. According to the American Land and Title Association (ALTA), 36% of residential real estate transactions in 2005 had issues with the title. In 2000, 25% of transactions had similar issues.
According to the association, the main problem was obtaining releases and payoffs for liens, such as:
- Existing first or second mortgages
- Unpaid child or spousal support
- Outstanding taxes
- Judgments against the property
The next biggest problem was obtaining releases for assignments on deeds of trust and/or mortgages. Other problems included erroneously recording on names, addresses, or legal descriptions of the properties.
The ALTA believes the increase to be a result of the increase in the total number of transactions. In looking at the increased numbers, buyers should definitely beware and purchase a title insurance policy. They usually cost 1% of the purchase price and can be worth it in cases where you purchase a property that later does not have clear title.
Dee Copeland, Investment Specialist
AustinHomeNews.com, Team Dee Residential
eRealtyAlliance Commercial Real Estate
Comments