An attorney can produce a title report, which is a summation or history of the title. The first step to having a clean title is to never buy land that hasn't been thoroughly researched by attorneys and land agents. Not only does this keep a buyer from walking into a legal nightmare, but it also gives them a better shot of securing title insurance of their own once they've taken over ownership of the land.

Likewise, buyers should refrain from signing an agreement until the title is completely cleared. Prospective buyers will likely find that land agents will not sell property without title insurance. Many times the problem can be resolved and title insurance issued.' 'Having a cloud on a title makes a property hard to sell and definitely hurts value. 'This makes the purchase of land in today's world fairly risky,' said Parsons. John Parsons of Mossy Oak Properties of Wyoming 307 Real Estate in Cody, Wyoming noted land will not only be less valuable if there is a cloud on the title, but it will also cause skepticism among others in the market. ' need to be sure they never buy a piece of property without a reputable attorney doing a title search,' McLellan suggested. And if your land is viewed as less valuable, then selling wouldn't be a beneficial or profitable option anyway.įor buyers who are still looking to purchase land even though there has been a history of clouds on the title, they will need to ensure they are taking every precaution to protect themselves. Without title insurance, buyers and lenders alike may be naturally hesitant of your claim to the property, which will effectively lower the market value of the land. ' affects the value and you cannot get title insurance.' 'It is almost impossible to sell without a clear title,' said McLellan. To make matters more complicated, title insurance companies will refuse to work with you because they cannot guarantee you are the sole owner of the land. Even if a prospective buyer was interested, once he or she found out about the dirty title, they would likely turn away because it's not worth the risk to deal with ownership disputes. Simply put, without a clean title, there will be no land transactions. 'It means there is a problem, such as a lien against the property, an heir that never signed off, the property was bought at a tax sale and a confirmation suit was never complete, etc.,' McLellan said.Īdditionally, if there are levies from creditors, municipal property or building violations or false surveys of your land, then a cloud may exist on your title. On the other hand, a dirty title means there is a cloud of uncertainty or discredit hanging over the ownership of your land. Beth McLellan, broker and owner of Mossy Oak Properties Recreational & Timber Land Sales, LLC in Kosciusko, Mississippi stated a dirty title essentially refers to an issue with your ownership rights that needs to be fixed. A clean title proves that you are the sole owner of your land and no other outside party can make any legal claims against you in regards to ownership. That's why it's important to understand what makes a title 'clean' or 'dirty.'Ī clean title, sometimes also referred to as a clear or good title, means there are no outstanding disputes with who technically has ownership of your land. Without knowing the exact rights included in your title, you may not be able to transfer your land. The title is the binding document that states your property rights, and in some cases, there may be several actors who have ownership of a portion of your land. If you're in the market to sell your land, you'll need to first consider the state of your title.

Dirty land art