How Your Title Company Handles Title Disputes

A title dispute arises when two or more parties have a claim on a specific piece of property. Some title disputes may arise from the previous owner of the land, and others may be from individuals who owned the property decades ago or even longer. Resolving these issues is necessary, and there are a few steps that are taken to reach a resolution. 

Researching the Matter 
In most cases, resolving title disputes Siloam Springs AR is completed when the title company researches the matter further. All documents related to the ownership of the land should have been recorded with the proper departments, and the title company will be able to locate these documents quickly. In some cases, the matter will escalate, and attorneys may become involved. Rarely, a matter will need to be resolved in court.

If the Matter is Not Resolved in Your Favor

Many title issues are discovered during a real estate transaction, and a buyer generally will only be approved for purchase if the title company attests that the title is clear. More than that, the title company typically will issue title insurance to the buyer. The title insurance protects you from financial loss related to legal costs as well as to the potential loss of the property if a dispute arises after closing. 

Most real estate lenders require a real estate buyer to purchase title insurance at closing, and they also require the title company to research the title history and to provide documentation that attests the title is clear. While all title companies offer these services, the level of service provided as well as the rate for the insurance can vary. Therefore, take time to research the options thoroughly before you make a final decision about which title company to use.

What to Do If a Real Estate Title Dispute Arises

Real estate often changes hands numerous times over the years, and most real estate transactions are completed without stress or drama. However, in some cases, there is a question about who owns the land or has rights to it. This may occur when one person passes away, and there is a dispute about who the title was transferred to during the estate settlement process. It may occur after a divorce or even because there are disputes over boundary lines between neighbors. 

What Can Happen During a Dispute 
Resolving title disputes Bella Vista AR is important because you could potentially lose the property that you believe is rightfully yours. There are financial impacts associated with title disputes. In addition, you could potentially lose the property and be without a home if the dispute is not settled favorably. 

What You Can Do
Title insurance is designed to protect you from title disputes, and it also can pay for some or all of the costs associated with a dispute. When you purchase title insurance, the title agents will thoroughly research title before you finalize the sale. Their issuance of insurance can provide you with peace of mind that the title is clear and ready to be transferred to you at the closing. However, in the rare event that an issue does arise, the insurance also can pay for all related fees and losses that you may incur. The title company also will work on your behalf to resolve disputes. 

While most people will not have to deal with a title dispute during or after their purchase, disputes can and do happen from time to time. Purchasing title insurance before closing is one of the best steps you can take to minimize the financial impact of this type of event and to ensure that the title is clear. Contact Elite title company for resolving title disputes and title insurance in Northwest Arkansas.