Deed Mistakes: The Impact on a Chain of Title
Provided by HG.org
Any type of deed mistake could lead to utter disaster in the chain of title for real estate deals, sales and transactions for the owner or potential buyer. Unfortunately, closing a real estate sale does not stop any possible problems that may arise with the title, and it is crucial to resolve any of these issues with all due haste before the buyer loses it all.
One particular error that occurs with frequency is the mistake in the legal description of the deed itself. This is a post-closing problem that could occur. With a property conveyed for purchase, it is with little difficulty that a deed may sustain a mistake in the description in the documentation. This issue creates a defective deed and will impact the chain of title negatively. A wrong call in the metes and bounds or a lot number mistake could lead to problems. When unchecked, this creates a serious issue for those involved, however, there are ways to correct this.
Improper Corrections to an Error
When an improper legal description leads to deed issues, it is not possible to just record the information anew. Those involved are not able to just correct the description attached to the property or even add to the details after the execution happens. If the real estate agency or others connected to the deed purchase or transfer do not complete this process correctly, the courts involved may rule the legal description as insufficient. This constitutes a defective deed. Even if omissions included in the description are not correct, the deed cannot sustain a change without the appropriate procedures.
Legal Description Proper Corrections
It is vital that legal descriptions and other errors and mistakes with deeds have the appropriate corrections. Without the proper changes, the deed may remain defective with all accompanying complications this poses to the buyer and other involved parties. This is possible through certain actions. The original grantor and those witnessing the notarized deed need to take part in re-executing the document through the state laws. This corrective deed then needs recording with the appropriate office. This is the only manner that the legal description may correct the defective deed. The witnesses are usually the same, but the process may have new witnesses observing the action.
Corrective Deed for Defective Issues
When drafting a corrective deed, the participants should have a cross reference within the newly corrected deed which references the details of the original defective deed itself. This is possible through a notation in the new deed that states the previous paperwork had errors in the legal description or other areas. The usual and standard wording is generally part of the new document to include the office, person recording the deed and witnesses. While these notations are not necessary, they help in the chain of title and issues regarding these matters. Transactions related to chain of title may suffer fewer problems when notations are part of the new document.
While the most important errors need correcting by creating a new deed document, other mistakes could lead to similar processes. The chain of title has issues affecting the possession of property in real estate deals when there is another person with legal interest in the land or building. The deed may have been created at some point without his or her name attached. Then, the document sale may pass the ownership of the property to another after the purchase. Similar mistakes occur when a person has a special interest in the land through mineral deposits. Without the names attached to the paperwork, the deed may progress to a new buyer without any inclusion of other parties. Original documentation may provide the corrective action so that heirs may inherit the interest or property even if someone else unrelated to this person or group buys the land or building.
Deed Mistake Resolution
So that any mistake with a deed begins the resolution process, the included parties may need a real estate lawyer, agent and someone to research the document and paper trail. It is difficult to resolve a property matter if someone else already owns the land or buildings.
Legal support is available through real estate lawyers for deed mistakes. To adjust paperwork through corrective action, the owner of the property may need to consult with a lawyer to determine where the issue lies. Then, it is usually possible for a remedy to correct and resolve the matter more easily.
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer.