If you're ready to sell a home but aren't sure you have a clear title, that's something you're going to need to work out. Without a clear title, it's going to be incredibly difficult to find someone who will be able to finance a purchase. Mortgage lenders won't want to finance a purchase that doesn't have a clear title, because problems that arise from black marks on the title could affect the value of the property.
Buyers can choose to take on the risk of purchasing a property with a title that isn't clear, but it's not a good idea. Construction, mortgage and judgment liens can end up costing buyers money and even lead to foreclosure when the title isn't clear. These unexpected liens are not possible if the title has already been cleared.
Title issues can also include neighbor disputes over property lines, so it's best to clear these issues up before attempting to sell a home. Even though it's possible to sell, the buyer may be left with a headache when trying to determine where the property line is.
If you're trying to sell a home without a clear title, your attorney can help you understand the risks and what it means for you. While buyers can take on the risk willingly, it's better to get the title cleared and to open the property up for more potential buyers.Your attorney can help walk you through the legal requirements to clear a title, so you can make a clean sale and be sure that the property won't come back to haunt you.
Source: The Nest, "Can a House Be Sold Without Clearing the Title?," accessed Aug. 23, 2017