What Athens Buyers and Sellers Need To Know About Cloudy Title

Cloudy title is one of those terms that you don’t hear much about until it happens to you. And when it happens to a buyer or a seller, it can quickly tank a sale right before it’s ready to go through. To protect yourself as either a buyer or a seller, it’s important to understand what a cloudy title is, how to keep yourself from having one, and what to do if you discover the house you want to buy or sell in [marlet_city] has a cloudy title.

WHAT IS A CLOUDY TITLE?

A cloudy title – also known as a cloud on title – is a document, lien, claim, or any other encumbrance that can invalidate or impair the title to a property, or that may make that title doubtful. A cloud on title typically occurs when there are unresolved issues regarding a property, such as foreclosure proceedings that were begun prior to a property being sold, or there might be liens from lenders or contracts to which the property owner agreed.

If the property’s seller didn’t pay for contracted construction or development work, the property also may have a mechanic’s lien. This type of lien stays in place until all labor and materials costs have been resolved, either by repayment of the debt or some other legal action.

In cases where a property was received by the seller in an estate or inheritance, probate issues also can cause a cloudy title. These issues arise if a property owner passed away without clearly defining who the property should go to, or if there are missing documents – such as death certificates – that throw ownership of the property into question.

Another, less common, situation that can cause a cloud on a title is fraud. If someone created a false deed that was recorded as a real one, it can throw into doubt who actually owns a property.

HOW CAN I PROTECT MYSELF FROM CLOUDY TITLE AS A SELLER?

If you’re selling a property, the best way to know whether or not you may have a cloud on your title is to have someone perform a title search prior to you listing the property for sale.

A title search, which is usually part of most standard home sales, can show you whether there are issues with the title of the property. Knowing about them before you’re in the midst of the sales process gives you enough time to clear up any issues by getting quitclaim deeds, paying outstanding debts, or pursuing other legal action.

Starting this process before you’re sitting with an offer on the table can save you a ton of time and frustration.

HOW CAN I PROTECT MYSELF FROM A CLOUDY TITLE AS A BUYER?

As a buyer, there isn’t much you can do to predict whether or not there will be issues with a cloudy title on properties you’re looking to purchase. Part of the sales process will be having a title search done on any properties you’re considering purchasing.

Sometimes, a cloudy title can be easily overcome by having the seller pay any money owed to a contractor, for example, or getting a quitclaim deed. However, not all situations are resolved this easily.

To protect yourself in the event of a cloudy title, don’t hinge all your property purchasing hopes on one single property. If you have any inclination there may be problems with the title to a property you’ve put an offer on, keep looking until you get the all-clear.

As a buyer, you are not liable for anything related to a cloudy title, but one certainly can derail your home purchasing plans without warning.

If you worry about cloudy titles and the [marlet_city] home buying or selling process, trust our team of professionals to help you through the process. Contact us today at 706-426-1082!

Georgui Kassaev

Georgui Kassaev was invited to this country in 1996 during the Atlanta Olympic games. The first place he came to call his home after leaving Russia and performing all over Mexico, was Athens. He became a professional mixed martial arts fighter, then coach, and eventually obtained two black belts in taekwondo and Brazilian jiu-jitsu. He formed a specialty carpentry and construction business which sparked his passion for real estate. He then rediscovered his first passion performing. After all, he has performed in the circus since he was eleven years old in front of thousands of people and then again when he was an adult as a professional fighter. In 2018 he landed his first 3 television roles. While acting, he continued developing his real estate skills, becoming a value-add investor in the Classic City and then getting his real estate license. He has now become a listing specialist in the Greater Athens Area, working with homeowners to protect their interests and get them the right price for their property! However, he never abandoned his construction roots and works with investor clients to help them buy properties based on their numbers with no aversion to making multiple offers. Georgui is fluent in three languages Russian, Spanish, and English. He is proficient in video production and social media marketing.

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