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.