Common Title Issues in Plano TX and How to Fix Them Before Selling

Common Title Issues in Plano TX and How to Fix Them

Introduction

If you’re reading this, it’s likely that you’re dealing with a title issue on your property in Plano, TX, and you’re uncertain how to move forward. Maybe you’ve been trying to sell your house but found out that there are unresolved title problems like unpaid property taxes, a lien, or ownership disputes. You know that these issues could complicate your sale, potentially causing delays, increasing costs, and reducing the offer price.

You’re probably feeling a bit stressed, uncertain about the process, and worried about how these complications could affect your ability to sell. You may be considering whether it’s worth the time, effort, and expense to resolve these issues before putting your house on the market, or if it might be easier to sell it as-is, perhaps to a cash buyer.

In this blog, we’ll walk you through the most common title issues that can arise when selling a house in Plano, TX, and how to address them. We’ll explore the costs, timeframes, and advantages of fixing these problems versus selling the house without addressing them. By the end, you’ll understand the best options available to you, including why selling to a real estate investor may be the simplest and most advantageous solution when dealing with title concerns.

Common Title Issues in Plano, TX and How to Fix Them Before Selling

When you’re preparing to sell your home in Plano, TX, title issues can be a significant roadblock. Title problems can be complex, and they often require careful attention and sometimes professional help to resolve. Understanding these common issues and knowing how to address them can save you both time and money in the long run. Let’s take a closer look at the most common title problems you may encounter.

1. Unpaid Property Taxes: How to Handle Delinquent Taxes

One of the most common title issues that sellers face in Plano, TX, is unpaid property taxes. If you have unpaid taxes, the county may place a lien on your property, which can prevent the sale of the house until the lien is cleared. This situation can be frustrating, as property taxes are due annually, and the interest and penalties on unpaid taxes can add up quickly.

How to Fix This Issue

To resolve unpaid property taxes, you’ll need to pay off the outstanding balance. Depending on the amount owed, you may be able to negotiate a payment plan with the local tax assessor’s office. It’s important to act quickly because the longer you wait, the higher the interest and penalties will accumulate. In some cases, tax lien certificates may also be issued, which could complicate the sale further.

The cost of resolving this issue can vary greatly. For example, if your property taxes are $2,000, but the county has added $500 in penalties and interest, you could owe $2,500 in total. Additionally, you may need to pay for title services, which can cost $100 to $200, depending on your location and the complexity of the lien.

Why Fixing This Is Important

If you don’t resolve the property tax lien, potential buyers won’t be able to purchase your home until the issue is settled. Furthermore, if you sell your property to a traditional buyer, the lien will likely be factored into the sale price, resulting in a lower offer. Alternatively, working with a cash buyer can help you avoid delays since they’re often willing to take on title issues, including tax liens, as long as the sale is structured in a way that is beneficial to both parties.

For more information on how to sell your home for cash in Texas with title issues, visit our detailed guide on How to Sell Your Home for Cash in Texas with Title Issues.

2. Outstanding Mortgages or Home Equity Lines of Credit

Another common title issue in Plano, TX, involves outstanding mortgages or home equity lines of credit (HELOC). If you still owe money on your mortgage or HELOC, the lender will have a lien on your property. This lien needs to be paid off before the title can be transferred to a new owner.

How to Fix This Issue

To fix this, you will need to settle the outstanding balance with your lender. This can be done through a standard sale, where the proceeds from the sale will pay off the mortgage. However, if you owe more than the current market value of your home, you might need to pursue a short sale, where the lender agrees to accept less than the full amount owed.

For more insights on how short sales work, check out this resource from Bankrate.

Keep in mind that a short sale can take longer to close, sometimes up to six months, and you may have to negotiate with the lender for approval. Additionally, a short sale may negatively impact your credit score.

Why It’s Better to Address This Issue

Lenders won’t release the lien on your property unless the outstanding mortgage or credit line is paid off. If you’re unable to pay off the loan in full, selling to a cash buyer can be a great option, as they are often willing to work with the lender to settle the balance quickly and without delay.

3. Ownership Disputes: Clearing Up Title Issues Involving Heirs or Ex-Spouses

In some cases, ownership disputes can complicate the sale of a property in Plano. If there is a dispute about who owns the property, such as in cases of divorce, inheritance, or disagreements among family members, the title may be clouded. In such situations, the title company will be unable to issue clear title to a new owner until the dispute is resolved.

How to Fix This Issue

Resolving ownership disputes typically requires legal action, such as a court order or a signed agreement from all parties involved. For example, in a divorce situation, you may need to obtain a deed of transfer or a court order to remove one party’s name from the title. Similarly, if you’ve inherited the property, you may need to provide probate documents that show the rightful ownership.

Why You Should Address This Issue

If you’re dealing with an ownership dispute, it’s crucial to resolve it before attempting to sell your property. Without clear title, the sale will likely fall through, leaving you with a house that you can’t sell. Selling to a cash buyer may offer the quickest and most efficient resolution, especially if they’re experienced in handling complex title issues like these.

For more information on how unpaid property taxes can complicate your home sale, visit our post on Can You Sell a House with Unpaid Property Taxes in Texas?.

4. Title Errors: Correcting Mistakes in Public Records

Title errors can occur for a variety of reasons. For example, a clerical mistake in the county’s public records could lead to a mismatch in ownership, or there may be an outdated deed recorded that needs to be corrected. These errors can create confusion and delay the sale of your property.

How to Fix This Issue

To fix a title error, you’ll need to work with the county clerk’s office to have the mistake corrected. This might involve submitting proof of ownership, such as the original deed or tax records. In some cases, a title insurance company may help to resolve the issue.

Why Correcting Title Errors Is Crucial

If there’s an error in the public records, it can prevent the sale from going through or lead to complications with the buyer’s title company. Title insurance can help protect you and the buyer from future claims on the property, but resolving the error as soon as possible is essential to avoid delays and potential legal issues. If time is of the essence, selling to a cash buyer may be a faster route, as they often accept properties with unresolved title issues as long as the deal is structured appropriately.

For more information on correcting title mistakes, you can visit this article on correcting title errors from Carefull.

Conclusion: Is It Better to Sell to Houston Area Home Cash Buyers?

While resolving title issues may be the preferred option for some homeowners, it’s not always the easiest or quickest route. Fixing title problems can be costly, time-consuming, and complicated, and it’s important to weigh these factors carefully before deciding to sell your home.

If you’re facing title issues, selling to Houston Area Home Cash Buyers can be a great alternative. At Houston Area Home Cash Buyers, we specialize in buying homes as-is, including those with title issues such as unpaid property taxes, mortgages, ownership disputes, and more. We understand the complexities of these situations and can offer a fast, hassle-free solution.

By selling your home for cash to Houston Area Home Cash Buyers, you can avoid the long delays and costs involved in fixing title issues. Our process is designed to make selling your home simple and straightforward, with a guaranteed cash offer and a quick closing, often within just a few days.

If you’re ready to move forward and sell your home quickly, even with title issues, Houston Area Home Cash Buyers is here to help. Contact us today to get a fair cash offer for your home and start the process of selling without the stress and complications of traditional sales.