Understanding Title Disputes

Do you have a dispute with a neighbor or another party regarding the ownership or use of property? Title disputes can have significant financial and legal consequences for property owners, necessitating their swift resolution. The legal team at LaFountain & Wollman P.C. understands the importance of pursuing a fair and favorable resolution to a title dispute to protect your property interests. Contact us today for an initial case evaluation to discuss your legal options with a knowledgeable real estate attorney.

A title dispute occurs when two or more parties have a conflict over the ownership or use of a piece of property. A property title should provide a public record of who owns and has the right to enter or use a property. However, various circumstances can lead to confusion and disputes over ownership and use rights, requiring parties to settle those disputes through legal action.

Common Causes of Title Disputes

Various conflicts between neighboring property owners or parties who have or purport to have interests in real estate may give rise to a title dispute. Some of the most common causes of disputes include:

Boundary disputes: Neighboring property owners may have title disputes due to questions or ambiguities over the boundary lines for their properties.
Conflicting ownership claims: Parties may have competing claims to ownership interests in a piece of real estate when parties inherit property from a family member or acquire property through unclear or ambiguous documentation, such as during a subdivision of a larger property. Conflicting ownership claims can occur when a party claims title through adverse possession.
Easements and covenants: Parties claiming to hold easements or covenants over a property can create a title dispute, especially when such easements do not appear in the public record but instead arise from the property’s use.
Liens: Mortgages and other liens can also create title disputes, especially when a property owner claims to have paid off the lien, but the lienholder never filed a discharge.
Errors in public records: Scrivener’s errors and other mistakes in public records, such as deeds and titles, can create questions about the property’s ownership status.
Fraudulent conveyances: Fraudulent conveyances of property through forged or fraudulent documentation can put property owners into conflicts with innocent third parties regarding title to a property.

Consequences of Title Disputes

An unresolved title dispute can have significant financial and legal consequences for your property rights, making it critical to speak with an experienced real estate attorney as soon as a dispute arises. Examples of issues you may face when a title dispute affects your property include:

Adverse effects on property sales: An ongoing title dispute can adversely affect a proposed property transaction, as arms-length buyers will only want to purchase a property with a clean title. As a result, a title dispute can delay closing on a real estate transaction or give the buyers grounds to pull out of the deal.
Clouded titles: A title dispute represents a cloud on a property title, meaning the owner may not have a marketable title that allows them to sell the property or borrow against it.
Title insurance complications: Title disputes can increase the cost of title insurance during a purchase and sale transaction or make it impossible to secure insurance if title companies deem the risk posed by a dispute uninsurable.
Reduced property value: Prospective buyers are less likely to purchase a property that does not have a clean title, as they have no guarantee that they will have clear ownership of the property.

Methods for Resolving Title Disputes

Parties who find themselves in a title dispute may pursue several avenues to resolve the dispute, such as:

Conducting a title search: In some cases, parties may resolve their dispute by conducting a title search to clear up any confusion, ambiguities, or gaps in the title record.
Mediation/negotiation: Parties may pursue informal negotiation or mediation to settle a title dispute, such as disputes over easement rights.
Title insurance claims: In some cases, parties with title insurance can submit claims to cover their legal expenses in resolving a title dispute or losses from a dispute, such as unrecovered expenses from a lost opportunity to purchase a property.
Correcting erroneous deeds: In Massachusetts, property owners can file a corrective deed to explain mistakes or scrivener’s errors in a prior deed, such as misspelling a party’s name or incorrectly identifying the property’s address.
Quiet title actions: When parties to a title dispute cannot resolve the matter through negotiation or other informal means, they may have to pursue a quiet title action, in which the court determines the legal ownership and use of the property and issues a judgment establishing title to the property.

Preventing Title Disputes

Property owners can follow a few tips to avoid the risk of a title dispute:

Due diligence: A thorough title search conducted by a title company or real estate attorney can identify potential title issues before you purchase a property and make those issues your problem.
Boundary surveys: Buyers can conduct boundary surveys to understand the accurate dimensions of the property, which can help resolve boundary and title disputes at the outset.
Clear documentation: Careful review of titles and deeds and proper recording of ownership documents can help prevent title disputes from cropping up down the road.
Title insurance: Title insurance can provide financial security against unforeseen title disputes, covering the cost of legal expenses to fight the dispute and losses that may arise from a lost dispute, such as a diminution in property value.

How Can an Attorney Help You in Your Title Dispute

A real estate attorney can help you favorably resolve a title dispute by:

Thoroughly investigating your case, including conducting title searches and working with surveyors to understand your property rights
Explaining your rights and options to help you make informed decisions throughout your case
Representing your interests at the negotiating table to pursue a favorable settlement that avoids the expense of litigation, if possible
Vigorously advocating for your interests in court if a quiet title becomes necessary to protect your interests

Contact a Real Estate Attorney Today

When you find yourself in a title dispute involving real estate, you need experienced legal counsel to help you protect your rights and interests. Contact LaFountain & Wollman P.C., today for an initial consultation with a real estate attorney to learn more about what to expect in a title dispute in Massachusetts.