Many prospective buyers of Colorado residential or commercial property might underestimate the importance of thoroughly vetting title-linked issues prior to a closing, being understandably focused on many additional matters.
After all, there is a lot to think about concerning any real estate purchase. Some buyers simply assume that a transfer of title is a routine final act of a transaction where all material matters have already been addressed and dealt with.
In fact, it is important for a quality title review to be timely conducted prior to any property closing. We underscore that on our real estate website at O’Brien Legal Services LLC in Denver. We note therein that our comprehensive advocacy in property matters includes a review focused upon defects and encumbrances that might attach to a potential purchase. It is obviously important for a buyer to be fully apprised of those and have the opportunity to take timely remedial action.
What kind of issues can a title review uncover?
Candidly, title issues range widely and can be quite different from case to case. A property might have some defect that disrupts an uninterrupted chain of ownership. Bad-faith actions of prior owners (e.g., a forged document) or simple recording mistakes might contribute to that. It is not uncommon for a property to be subject to a lien or other encumbrance; contractors sometimes file claims for unpaid work, and tax authorities levy against real estate for alleged unpaid taxes. Litigation might be pending or ongoing. One or more third parties might claim some right or interest in property that clouds its title.
An experienced real estate attorney knows how to look for and spot such things, and can appropriately advise a client concerning how-to approaches for dealing with them.
Buying property is always a transaction of top-tier importance. Having input from proven legal counsel concerning title issues and all other material matters can promote a successful closing.