What happens if someone has a title claim against your home?

| Mar 27, 2021 | Residential Real Estate Transactions |

It may have been years since you purchased your home when you hear from someone who claims to have title rights to the property. Perhaps they are a person who didn’t authorize the sale of the property by their estranged spouse who was their co-owner. Maybe they are an heir from an estate who never received notification of their ownership interest in the property.

If someone has a title claim to your home, they could potentially take you to court and have you removed from the property.  A successful title claim will mean that you lose all of the equity established in your home because the person with title rights does not have to reimburse you for anything you invested in the property. What protects you from such claims?

Title insurance can help those worried about ownership issues

When you first purchase a home, you probably had to pay for title insurance on the property. Most lenders require title insurance to protect them, and most homeowners purchase a policy that protects their ownership interests as well.

Your title policy only came after a company reviewed the title and determined there were no defects to it. If it turns out that there are title defects or claims, the title insurance can reimburse you for the amount of money you’ve invested in the property so that you can at least find somewhere new to live.

Talking about a potential claim against your home with an experienced real estate law attorney is often wise when you’re dealing with a title claim or other issue.