For people looking to buy or sell property in Illinois, issues with the transfer of a title can result in time-consuming confusion. Often, especially if left unresolved, these problems can become increasingly costly to work out. While a smooth title transfer is true in many situations, it is important for both buyers and sellers of real estate to understand potential title issues so they can avoid them if possible.
Some of the most common reasons why people may have a difficult time transferring a title from one name to another include the following:
- Bankruptcy of the previously named owner on the title.
- Failure of the contractor to remove the Mechanic’s Lien. This type of lien is designed to protect contractors and ensure they get paid.
- A divorced couple fails to resolve a child support lien that has been placed on the property that is up for sale.
Fortunately, if people are facing issues with the transfer of a title, they have options to consider that may enable them to resolve differences and acquire the property they wish to buy. However, it is wise for buyers to consider investing in a title insurance policy ahead of time. According to Zillow, the purpose of this type of insurance is to protect buyers from potential issues with the title that they may be presently unaware of. Most of the time, the insurance company will perform an assessment to uncover any problems with the title. If the buyer acquires the property only to discover problems with the title, the insurance company is usually responsible for any damages resulting from their missing critical information.
