Conducting a title search is a critical step in buying real estate. It involves a detailed review of public records to verify legal ownership and uncover any claims or restrictions on a property. This thorough examination reveals important details, such as hidden liens, easements, covenants, or potential title disputes with heirs. Knowing a property’s title history and any associated legal issues is essential to protecting your investment. A title search helps inform you of legal matters that may impact your ownership rights, offering reassurance that the property matches its representation.
When it comes to the busy New Jersey real estate market, unexpected title issues can arise. This is where a dedicated New Jersey real estate attorney becomes invaluable. At The Matus Law Group, our skilled attorneys can assist you in purchasing real estate and guide you through the details of title searches to protect your investment. Contact us today at (732) 785-4453 to schedule a consultation.
Below, we have outlined some of the issues that could be uncovered during a real estate title search:
Nothing
Obviously, this is the best possible outcome for any prospective home buyer. Your goal is that your title search will find absolutely no issues of note, known as a “clean” title. This will probably be the case for a majority of home buyers, but you can never assume that your title search will fail to uncover anything. In fact, you should normally approach the title search from the perspective of hoping for the best but planning for the worst. Prepare yourself to deal with issues that turn up on the home’s title, and if nothing does, you will be pleasantly surprised.
Liens
Every home buyer must be very aware of potential liens that could be on the property. A lien is an official claim against a property by someone other than the owner as collateral and potentially payment for unpaid debts or liabilities. For example, the IRS could place a lien on a home if the owner has significant unpaid taxes. Additionally, all mortgage companies place a mortgage lien on a home when the owner finances with them. What this means for you as a buyer, if your title search uncovers a past lien, is that another party has a right to that property and you will have to take steps to have the lien released if you are going to purchase the home. Uncovering liens from previous owners is most common when purchasing foreclosures.
New Jersey Real Estate Attorneys
Christine Matus
Christine Matus has been a dedicated advocate in New Jersey real estate and estate planning law since 1995. As the founder of The Matus Law Group, her leadership has shaped a firm culture centered on client advocacy and community engagement. She is known for her legal acumen and a long-standing commitment to serving special needs families and local nonprofits.
- Board roles with Ocean County Bar Association, 21 Plus, MOCEANS
- Regular speaker on nonprofit law and estate planning
- Volunteer mediator and active community leader
- Contributor to Filipino-American publications and legal journals
Kristine Carranceja-Gurski
Kristine Carranceja-Gurski merges her legal experience and skills with a background in finance to provide clients with a comprehensive perspective in real estate transactions. Her career reflects a deep commitment to public service, from leading pro bono initiatives to serving local community groups.
- Dual Bar admission in NJ and NY
- Established the Ocean County Bar Association’s Pro Bono Committee
- Extensive experience with nonprofit legal education and tax programs
- Leadership roles in civic and parent organizations
Brayndi Grassi
With experience spanning intellectual property and real estate, Brayndi Grassi brings both creativity and precision to her legal practice. Her scholarly achievements and local roots give her a unique edge when advising New Jersey clients.
- Transitioned from music law to real estate law in 2018
- Published in the Mitchell Hamline Law Review on copyright issues
- Speaker at international IP forums
- Deep Toms River roots dating back to the Revolutionary era
Municipal Liens, Judgments & Tax-Sale Certificates
Of all the things a title search can turn up, municipal liens, judgments, and tax sale certificates are some of the most common and concerning red flags for property owners in New Jersey. Discovering one of these on your property can feel overwhelming, but you have a path forward.
A municipal lien is a claim the town can place on your property for unpaid obligations like property taxes or water and sewer bills. Under New Jersey law (N.J.S.A. 54:5-9), these liens take priority over almost all other debts on your property. To clear a municipal lien, you must pay the outstanding balance, including any interest and penalties, directly to the municipality.
A judgment is a court’s official decision that you owe a debt. Once docketed with the Clerk of the Superior Court, it becomes a lien on all real estate you own in the state for 20 years. This means you cannot sell or refinance your property without satisfying the debt. Clearing it involves paying the creditor the amount owed, who then files a “warrant of satisfaction” to remove the lien.
If property taxes remain unpaid, the municipality can sell a tax sale certificate. This is not a sale of your home, but a lien that an investor purchases. The investor can then start a foreclosure action if you do not redeem the certificate within two years by paying the full amount of the delinquent taxes, plus interest, penalties, and costs.
These issues can be stressful to handle on your own. A real estate attorney can help you verify the amounts, negotiate with creditors, and ensure your property title is cleared correctly.
False, Illegal, or Inaccurate Documentation
There are numerous issues that could be discovered regarding the documentation of the home. Documents and records that were submitted to local housing authorities could be found to be forgeries or even have typos and other errors that invalidate them. It may seem unlikely, but clerical and filing errors occur all the time, and they can have a major impact on your ability to purchase a home, and even your legal ownership of a home if you purchase it and the issue is uncovered after the fact. These types of issues must be uncovered and corrected as soon as possible.
Easements and Survey Issues
Generally speaking, an easement is a legal right of way on a property. For example, the property may include a utility easement allowing the city or county to access and perform work on certain parts of your land, or your driveway may include an easement allowing another adjacent property owner to utilize it to access his or her own property. A previously unknown easement that is uncovered in the title search could severely impact how you are able to utilize and enjoy the property if you purchase it. Additionally, not all land surveys are created equally. The title search could uncover multiple surveys displaying different results regarding the property boundary of the home.
Inheritance Issues
If you are seeking to purchase a home from someone who inherited the property, the title search could discover other heirs who share the claim to the property and have not agreed to sell it. Similarly, the search could uncover a previously undiscovered will ceding the property to heirs who were unaware of their claim. An inheritance issue could become a major roadblock to your ability to purchase the home.
This is just a brief sample of some of the problems that can arise and be uncovered in a title search. However, it is far better to discover these issues BEFORE you purchase a home rather than after. If you are considering purchasing real estate, please contact The Matus Law Group today and let us guide you throughout the process, including conducting an efficient and effective title search.
| Potential Issues Uncovered in Real Estate Title Searches | Description |
|---|---|
| Liens | Potential claims against the property by entities other than the owner, such as unpaid taxes or mortgage liens, requiring resolution before purchase. |
| False, Illegal, or Inaccurate Documentation | Discovery of forged or erroneous documents submitted to housing authorities, which can impact ownership rights and require correction. |
| Easements and Survey Issues | Identification of legal rights of way (easements) or conflicting land surveys affecting property usage and boundaries, potentially limiting property enjoyment. |
| Inheritance Issues | Uncovering other heirs or undisclosed wills regarding property inheritance, posing obstacles to the purchase process if ownership claims are disputed. |
Purpose of a Title Search
A title search is a thorough examination of public records to confirm the legal ownership of real estate and identify any potential issues that may affect this ownership. It reviews the property’s deed history, mortgage records, and any other relevant documents that could influence ownership status.
The main purpose of conducting a title search is to confirm that the person selling the property actually owns it and has the right to sell it. This process helps identify any outstanding debts or legal claims, such as liens or easements, that may exist against the property, ensuring that these are resolved before the property changes hands.
Typically conducted by a title company or legal professional, a title search protects both the buyer and the seller. For buyers, it safeguards their investment by ensuring there are no hidden issues that might later affect their property rights or financial standing. For sellers, it confirms that the property can be transferred without complications, facilitating a smooth transaction.
A title search is about establishing a clear and authentic ownership history, providing peace of mind to all parties involved in the real estate transaction. This step is particularly valuable in complicated situations, such as when the property has a long history or has changed owners frequently, helping to ensure a smooth path toward a secure and undisputed transfer of property.
Is a Title Search Mandatory in New Jersey Real Estate Transactions?
When purchasing a home in New Jersey, you may wonder if a title search is optional. While New Jersey law doesn’t strictly mandate a title search for every real estate transaction, it’s a critical step that’s practically non-negotiable. If you’re getting a mortgage, your lender will almost certainly require a title search to ensure the property has a clean title, protecting their financial interest.
A title search examines public records to uncover any issues with the property’s title, such as liens, unpaid taxes, or ownership disputes. Standard searches typically cover 40 years, though a 30-year search may suffice for properties with a state-granted title, and a 60-year search is used for complicated cases. Following the search, lenders often require title insurance to safeguard against any undiscovered title issues.
This process is essential to protect your investment. Consulting an experienced real estate attorney is highly recommended to interpret the search results and resolve any title issues, ensuring your purchase is secure for the future.
What Documents Are Examined When Looking For Property Titles?
For a successful property title search in New Jersey, it is crucial to thoroughly examine legal documents to verify ownership legitimacy and detect any possible liens or burdens. This detailed investigation is vital for protecting buyers and lenders from future legal and financial issues during real estate transactions.
The list of documents reviewed during a property title search typically includes:
- Deeds: These are pivotal in tracing the ownership history of the property, showing previous and current owners, and verifying the seller’s right to sell.
- Bankruptcy Records: These can indicate whether past or present owners have filed for bankruptcy, which could potentially affect the status of the property title.
- Divorce Cases: Divorce settlements can impact property ownership, especially if the property was jointly owned, and may indicate a division of assets.
- County Land Records: These encompass a variety of documents related to the property, including past transactions, which are essential for establishing a clear history of ownership.
- Financial Judgments: Any financial judgments against the property or its owners must be addressed, as they can lead to liens or other claims on the property title.
Lawyers carefully examine the documents to piece together the property’s history, spot any discrepancies or issues, and tackle them before transferring the property. This thorough examination is essential for a legal property transfer and protects everyone’s interests.
Protecting Your Investment Starts Here
If you’re thinking about buying or selling property in New Jersey, it’s important to have someone on your side who really gets what’s at stake; your future, your safety, and your peace of mind. Real estate transactions can come with hidden issues, especially when it comes to title searches. That’s where a good attorney makes a real difference.
An experienced New Jersey real estate attorney from The Matus Law Group can dig into the details, catch problems before they grow, and walk you through what to do next. We’re here to help protect your interests and give you the guidance you need to feel confident about your decisions, start to finish.
If you’re facing a real estate transaction and want someone who’s focused on your goals, reach out to us. Call (732) 785-4453 to set up a consultation. You’ll get straightforward answers and real support.
