When purchasing residential real estate, a title search is often carried out. This determines who holds the title and has the ability to sell the property. In many cases, the seller is the only person on the title.
However, there are more complicated situations where multiple people may be on the title for the same home. What could this mean for the transaction and what are some of the reasons why it happens?
They are married
This often happens when married couples buy homes together. If they decide to sell the home – because they are moving or after a divorce – then they may need to do so together. One person cannot simply sell the house without the other person’s cooperation.
They both inherited
A similar thing sometimes occurs when people inherit the same property. Multiple siblings may all be given their parents’ home in the estate plan. They all have equal ownership percentages. They certainly may be interested in selling the house, but they need to do it together and split the proceeds. One sibling cannot just sell the house without working with the others.
They are committing title fraud
Finally, there are some situations in which title fraud is occurring. This is when someone fraudulently steals or acquires the title to a home and then tries to sell it without the actual owner’s knowledge. The true owner may still live in the house and be just as surprised as anyone that it is up for sale.
When these types of complications arise in a residential real estate transaction, those involved need to know about their legal options.