Three Things That Surprise People About Owning Real Estate
Most people think a closing attorney’s job is to show up on closing day with a stack of papers, tell everyone where to sign, hand over the keys, and celebrate. And yes, that’s the fun part. The truth is, if we’re doing our job well, most of our work is finished before anyone ever walks into the closing room. We spend our days finding problems, solving problems, and making sure buyers actually receive the property they think they’re buying.
There are three things that surprise homeowners:
1. Paying off your mortgage doesn’t always cancel it in the public records
Many homeowners assume that when they make that last mortgage payment, the bank automatically cancels the security deed in the county records. Usually that’s what happens, but not always. Sometimes paperwork gets lost, banks merge, sometimes someone simply forgets to file the cancellation.
Sometimes our job isn’t knowing the answer, it is figuring out a solution nobody else has thought of. Closing attorneys work with underwriters to create solutions so closings go smoothly. Paying off a loan and clearing title in the official records are two different things.
2. Just because your family says you own the house doesn’t mean you legally own the house
Families often think ownership passes automatically when someone dies. Sometimes it does, but many times it doesn’t. We recently had a family trying to sell their grandmother’s house. Everything seemed normal until the title search revealed two estates. Legally, the heirs could not sell something they did not yet legally own. If someone passes away without a will, the heirs need to file an administration in probate court where an administrator is appointed. The court will issue either letters of administration with the authority to sell, or a leave to sell order giving the administrator the authority to sell the property. If someone passes away with a will, then the heirs need to file a petition to probate the will in probate court. The court will issue letters of testamentary appointing an executor to carry out the terms of the will. These are the two main options for handling estates and sometimes there are other options. Never assume inherited property is ready to sell.
3. Tax records don’t determine ownership
People love looking at county tax websites, but tax records are maintained for taxation—not to establish ownership. I’ve had people tell me, “My name is on the tax bill.” That’s great, but ownership comes from recorded deeds, not tax bills, utility bills, or family stories.
County tax records are incredibly useful, but they’re designed to answer one question: “Who should we send the tax bill to?” They’re not designed to answer, “Who legally owns this property?” Those are completely different questions that confuse many homeowners.
William Jarrett is a real estate closing attorney with Origin Title and Escrow, Inc.. Since 2003, Origin Title has handled real estate transactions – purchases, refinances, reverse mortgages – quickly and professionally. There will be no surprises, nothing misunderstood. Title searches are thorough and well-reasoned, to avoid unpleasant surprises later down the road. Calculate your closing costs in Georgia or Florida using our calculator or contact Origin Title using this form.