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If the house has a title problem that means that someone other than the seller has a claim of some form of ownership or a lean on the property. It has an old mortgage that is not paid the lender could come back and foreclose on it and you would be out of luck If someone other than me sells you my house it is still my house. You could show up with a deed from someone else and it is worthless. They do not have the authority to sell it. Maybe it is part of an estate and is now owned by 4 siblings. They all four must sign to sell. If only three sign the fourth would still have part ownership.
Never buy a property without clear title and always buy owners title insurance. I have a seller now with a problem. His title insurance will save the day for him.
Title to property that does not clearly confer ownership is "Bad Tiltle". Most frequently applied to real estate, a bad title may prevent a homeowner from selling the property. Title may be clouded by unpaid taxes or other unsatisfied liens, a faulty or incomplete certificate of occupancy, an incorrect survey, or uncorrected building violations, among other causes. Steps must be taken to rectify these problems before title to a property can be legally transferred. Also called a "cloud on title". The attorney or title agency handling the closing will have the results of the title search and should be able to address the specifics of your questions.
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