What To Do When Your Ohio Property Title Is Clouded: Legal Steps And Remedies
One of the largest financial transactions that a person can make in their lifetime is the purchase of a piece of real estate. Regardless of whether the property is used for residential or commercial purposes, the owner expects a clear title to the property if they choose to sell the property or refinance it at a later date without complication. A property has a “clouded” title, however, can cause all these expectations to be turned upside down. Knowing what a clouded title is and what Ohio property owners can do to clear it is necessary.
What does a clouded title mean?
A clouded title is any defect, claim, or question concerning who owns the property. This may be due to unpaid liens, errors in the recording of documents, disputes over property boundaries, probate issues, fraudulent conveyances, and disputes concerning property ownership. Even small errors in documents can cause significant problems and prevent the clear transfer of ownership.
How clouded titles impact property owners
A title defect can affect the sale or refinancing of the property since lenders and buyers require a clear title to proceed with the sale or refinancing of the property. In some cases, a title defect can lead to legal problems for the owner due to claims by other parties to the property. If these problems are not resolved, they can hinder property sales indefinitely and affect the property’s value.
Common causes of title problems in Ohio
Some of the reasons for clouded titles include unpaid property taxes, contractor or mechanic liens, outstanding judgments, and mistakes that were made previously. Some of the properties that are commonly affected include those that were acquired through foreclosure, tax sale, or inheritance. They are also boundary disputes that can arise among neighboring property owners.
Initial steps to take
When a title problem is identified, the first step is determining what is causing the problem. This is usually accomplished through a title search, which is carried out by the title company or an attorney. In some cases, the problem is usually cleared through administrative action, such as paying off a lien, correcting a recording error, and clearing it with the creditor.
When legal action is necessary
If the informal remedies don’t work or are not an option, legal remedies might be necessary. One such legal remedy would be a quiet title action. This would involve filing a lawsuit seeking a determination by an Ohio court regarding the rights to ownership concerning the property and clearing any claims to the property.
Another legal remedy would involve declaratory judgment actions or correcting defective deeds by court order. This would depend on the nature of the defect and the individuals involved.
Why timing matters
Delaying the resolution of title issues can make them worse. This is due to the fact that liens may accumulate interest, disputes can escalate, and a buyer may decide to walk away from the deal. Resolving title issues promptly will help maintain the value of a property and avoid protracted litigation.
Talk to a Dayton, OH, Quiet Title Suits Lawyer
Kohl & Cook Law Firm, LLC, represents the interests of Ohio residents who need to clear a clouded title. Call our Dayton quiet title suits lawyer today to schedule an appointment, and we can begin discussing your next steps right away.
