More Common Title Problems
More Common Title Problems
This issue will indicate some interesting ways that, if we at Benchmark are not vigilant and paying attention to the “Red Flags” I have mentioned in the past, could cause some real problems in the future regarding your purchase.
Deeds from a defunct corporation can become a problem in that if we are not in possession of the corporate papers identifying the officer from the former corporation who is legally authorized to convey any corporate owned property, and we insure the title to that property accepting the signature form the wrong corporate officer. The sale could be set aside by a court of competent jurisdiction. The purchaser may then have a claim against the title company.
When a deed is given in the sale of property, the person giving that deed must be of sound mind and capable of understanding what they are doing and the consequences of their act. We need to be certain that when we are closing the transaction and suspect that there may be an issue in this regard, appropriate questions be asked in order to be sure of the competency of the individual. This also is a situation where the sale could be voided.
Although minors can own property in their name, they may not sell that property while a minor. A guardian or parent must be fully involved in the transaction for there to be a valid transfer of property. Once again the transaction, if by a minor, could be declared null and void.
If a deed by a supposedly single person is given and it is later discovered that that person was, in fact, married, that discovery can create a serious problem. Illinois is a state in which a spouse acquires a homestead right in and to the premises if the married couple lived together in the marital property.
All of the above can be problems affecting title, but in most cases we have documents signed at the closing that protect both the purchaser and the title company. Although mistakes do occur, we at Benchmark Title pride ourselves in our ability to spot some of these issues, understand the consequences, and provide the proverbial “Ounce of Prevention” in order to protect the purchaser and the lender. That is why title insurance is such an important part of any real estate transaction.
Any questions can be directed to Benchmark Title at 618-239-3750. Please feel free to call or email:
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