These 7 Issues Can Hinder a Property Sale

Buying real estate is a little more complicated than buying a new television set. Land has had generations of owners — often within the same family. Over the years, owners divide parcels and sell them. Owners or government agencies build roads across the land. All this has to be recorded in the county register’s office.

With so many documents recorded, it’s amazing there aren’t more problems with property records. The careful and complicated process used for real estate transactions is the reason problems are relatively uncommon. 

Public record errors can derail a property sale. But some of the most common causes for real estate transactions failing is sellers not accommodating buyers or selling to an unqualified buyer. We’ll cover these property sale issues and more in the sections below.

1. Not Accommodating Buyers

Real estate purchase agreements are binding on both the buyer and the seller. Often, these contracts will have conditions the seller must meet before the prospective buyer must go forward with the purchase. For example, the contract may require the seller to hire a home inspector or for the seller to pay for certain repairs. 

If the seller hasn’t performed their part of the bargain by a certain date, the contract may allow the buyer to pull out of the agreement. 

2. Public Record Errors

An error in the public records could be something as simple as a clerical error that raises confusion. Or a missing page in a document that may lead to expensive litigation to resolve an issue.

Mistakes in public records lead to many of the other property sale issues on this list. For example, if an easement isn’t in the public record, but a neighbor has a driveway that surveys show is on the seller’s property, that’s a matter of concern for the buyer.

Clearing up these problems can be expensive for the buyer. For this reason, buyers will not want to pay as much for the property.

3. Unknown Easements

There’s more than one way for an unknown easement to cause problems. In the example above, the easement for the driveway might have resulted from an agreement between neighbors thirty years earlier. People often think they’ll live in a house forever and will have the same neighbors forever. 

The neighbors never record the agreement. The current seller may have bought the property from one of the original parties that agreed to the easement. If they didn’t mind the easement, why would they record it?

Utilities have easements for power lines, sewers, and pipes across private property. If the title search finds that the local power company may run a power line across the backyard, the buyer will not want to pay as much for the property.

4. Forgeries
Forgeries are unlikely to be found in the title search. But an angry family member may bring it to light. For example, if an elderly widow’s child forged her name on a document transferring the property to the child, they may sell the property for a bargain before their siblings get wind of what they’re up to. 

If you bought the property for a bargain and now you’re trying to flip it, you won’t be happy when the forging child’s siblings seek to set aside the sale — especially when you’ve already entered into a contract to sell the property. It’s a good idea to contact the Rochford Law for help in avoiding such situations before they ever happen.

5. Missing Heirs

What happens when a previously unknown child of a decedent contests a will? In Tennessee, a plaintiff must file a will contest within two years of when the court issues the order admitting the will to probate. If the child was under 18 when the court admitted the will to probate, the period is longer. Like forgeries, this is something title searches won’t discover until the missing heir is no longer missing.

6. Boundary/Survey Disputes

The metes and bounds system of property descriptions is still common in Tennessee. This system relies on landmarks such as roads, buildings, creeks, and even trees. 

What happens when a creek changes course or a storm destroys a building used in the property description? This is one of the common causes of property boundary disputes in Tennessee. 

If the property survey is unclear, buyers will have second thoughts about purchasing the property.

7. Selling to Unqualified Buyers

This is probably the most common reason property deals fall through. Unless the buyer has cash on hand, they’ll need mortgage financing. If no one will make the loan to them, they can’t pay the seller. Selling to a party that can’t pay is no way to do business.

Work With Rochford Law

At Rochford Law & Real Estate Title, we’re here to help you with your real estate and title service needs. For help to avoid the property sale issues mentioned above, please contact us at (615) 269-7676. We look forward to hearing from you.