I was recently working with a young lady as she bought a home. The first home she put a contract on was a very nice property but just days before we were supposed to close on it we found that it did not have an insurable title. The owner was upset because they said legally the title was clear, but the title company could not issue a title insurance policy and so the mortgage company would not put a loan on the property (and my buyer would not have bought it with that problem anyway). We backed out and bought another home instead.

The problem in the case of the first house was that the owner's husband had died a few years before and the owner had some papers filled out that she felt like showed she was now the only owner of the property. The will was never probated and there were four grown children (by another wife)- some of which refused to sign papers giving up any rights they may have to the house.

The clear title to your property can be clouded by death, divorce, income or property tax liens, homeowners associations, workman's liens, or several other things. If you are settling an estate or divorce please get advice from a real estate attorney to help you clear the title. We helped a lady sell her house nineteen years after a divorce and found that her ex husband still needed to sign some papers...he tried to get compensation in exchange for his signature!

Don't put yourself in that position.