Ask any real estate agent how many sales go through smoothly. After the agent stops laughing, they will probably say, “Almost none”. One agent relayed a story about a sale that was almost cancelled because of the Soldiers’ and Sailors’ Relief Act of 1940. It seemed that during World War II, the husband was serving overseas and had never signed off on the sale of his home. This was discovered during an attorney’s title search. The current sale could not proceed until the closest living relative of the long-dead serviceman/husband was located and paid to sign a document.
Many people buying a home regard the title search as just something else they have to pay for. It’s much more than that. A title search confirms that the seller has the right to sell the property and can transfer a ‘marketable title’ to the buyer. The search starts at the ‘root of the title’, which is the first record in the chain of transfers and encumbrances. State law stipulates how far back the search must go.
More often than not, a property title will be encumbered in some way, typically by the current owner’s unpaid mortgage. However, there may also be liens or court judgments. For example, an unpaid contractor who did work on the property might file a lien. Before the property can be sold, the seller would have to work out a deal with the contractor. An experienced real estate attorney will be able to suggest viable options.
If a property is sold after a foreclosure, existing liens are prioritized and paid off until the sale funds are exhausted. It is possible that the holder of an unpaid junior lien (unpaid homeowner association fees, for example) could sue the new owner of the property. A knowledgeable Real Estate Attorney in Mahopac NY will ensure that the buyer is aware of such possibilities so that they can be taken care of as part of the sale negotiations and avoid unpleasant ‘surprises’ later.
The attorneys at Spain and Spain PC have over 50 years experience aggressively representing the interests of their clients. Each Real Estate Attorney in Mahopac NY has represented buyers, sellers and lenders and has in-depth knowledge of real estate and related issues such as zoning. To learn how they can protect your interests, visit their website or call for a free consultation.
