How to Handle Title Disputes or Liens on Property

Whether you’re buying or selling an Iowa property, discovering that there is a title dispute or a lien in place can be stressful. Identifying the issue and addressing it can be a complex process, and it may require the assistance of an Iowa lawyer. This article will help you better understand why there might be a lien or title dispute associated with a property and what you should do to clear it.

What Are Title Disputes and Property Liens?

In a title dispute, parties disagree about who owns a piece of property. A lien is a legal claim that a creditor places on property when the property owner owes the creditor money.

Common Causes of Title Disputes

Title disputes may occur because of clerical errors in public records. This could include such mistakes as misspellings or incorrect property descriptions. Conflicts over property lines, unreleased mortgages or property liens can also cause title disputes.

Another common reason for title disputes is undisclosed heirs or other issues with probate. Forged or fraudulent documents may create a title dispute, but this is less likely.

Types of Liens That Can Affect Property Ownership

A mortgage is one type of lien, often called a “voluntary lien” because it is something that you agree to. Other types of liens are generally not voluntary.

A tax lien is placed on a property when federal, state or local taxes are not paid. In addition, contractors can place a lien on property if they perform work and are not paid for it. This latter encumbrance is known as a “mechanic’s lien.”

If you are delinquent in paying utility bills, a company may place a lien against your property. Other types of unpaid debt can create a judgment lien if your creditor goes to court and is successful.

Why Title Issues Should Be Addressed Quickly

One reason that you need to address this type of an issue promptly is that a title must be clear before lenders will grant a mortgage. If you are trying to sell a piece of property and there are title issues, the buyer might exit the deal if it is taking too long to resolve it. Contracts may also expire if there are delays.

Without a quick resolution, title issues may result in costly and time-consuming litigation. If you are the buyer, it’s necessary to deal with a title issue because the problem can become yours if it isn’t resolved before the sale is complete.

How to Check for Existing Liens or Title Problems

Liens are considered public records. Therefore, information on them is available to anyone. You can reach out to the court clerk in the county where the property is located to get information on liens.

There are also online portals where you can look up this information. For example, you can find federal liens on Iowa property using the Iowa Secretary of State Fast Track Filing System.

Another option is to hire a title company to perform a search. Even though this kind of information is public record, it can be difficult to track down in some cases. An attorney can also do a title search on your behalf.

Steps to Take When a Title Dispute Arises

Your first step should be to gather information. Start by finding out exactly what the nature of the problem is. This might be a lien, a previously unknown heir making a claim, a conflict over boundaries, a clerical error, or something else entirely. Documents that may be useful include contracts, deeds and boundary surveys.

If you have title insurance, you will need to reach out to the provider of your policy. The responsibility for clearing the title may fall to it. You may also need to contact an Iowa lawyer for assistance with the process.

Once the origin of the problem has been identified, you can take steps to resolve it. The nature of this resolution varies depending on what the issue is. It might involve fixing mistakes in paperwork, completing new paperwork, negotiation, or litigation.

How to Resolve a Property Lien

You can resolve a property lien by paying the debt. If you are attempting to purchase a property and you’ve discovered a lien, you may need to work with the party responsible for the lien to ensure that they make the payment.

Depending on the type of lien, there are also processes for challenging it. For example, if there’s a mechanic’s lien on your property, you might be able to challenge it in court if you don’t agree with it.

When Legal Help May Be Needed

Issues around property liens and title disputes are complex. You might want to hire an Iowa attorney to walk you through the process in all but the most straightforward situations.

An attorney can explain the process to you, negotiate on your behalf and take the case to court if necessary. In addition, an attorney can communicate clearly and accurately with other parties involved.

Protecting Your Property Rights Moving Forward

A lien on property that you are buying or selling or other types of title disputes can be stressful and complex to address. At Peters Law Firm, we’ve been helping clients with their legal problems since 1895. We can work with you to resolve a variety of legal real estate issues. Contact Peters Law Firm in Council Bluffs, IA today for assistance with property liens and title disputes.

FAQs About Title Disputes and Property Liens

Some aspects of how title disputes and property liens are handled vary from one Iowa county to another. Because there are so many elements involved in these types of issues, we encourage you to ask us specific questions about your situation. Below are some more general questions and answers on this topic.

What is a title dispute?

A title dispute is a disagreement about property ownership. It can also be an issue with a claim against the property, including a lien. Title disputes may arise over contested wills, clerical errors or conflicts about boundaries, among other issues.

Can you sell a property with a lien on it?

You can start the process of selling a property with a lien on it. However, the title must be clear before it can be transferred to the buyer. It may be possible to direct proceeds from the sale to the creditor.

How do you remove a lien from a property?

You can remove a lien by paying the debt. In some cases, you may be able to negotiate a settlement. You may also be able to challenge a lien if you believe it is invalid.

How long does it take to resolve a title issue?

It depends on the nature of the issue. To resolve a minor clerical error or a small debt, it may take anywhere from a few days to a week or two. For more complex issues, such as unknown heirs, the process could take a great deal longer.