Archive for the 'Title' category
Defective Title
On Martha's Vineyard we often come across land with cloudy (defective) title. Most title issues can be cleared, for example mortgages not discharged properly or mechanics liens. More difficult and sometimes near impossible are unknown owners with a small percentage ownership in any one lot or unknown owners of an entire parcel.. One example might be probate at an owner’s death not knowing about the Martha's Vineyard ownership that may have been passed down generation to generation. After many years there can be scores or 100s of descendants. Since MA is a quit claim state (sellers only selling what they have) having an attorney do a thorough title search is an important piece of a Vineyard sale.
The risk might be slim particularly when a descendant does not even know about their partial ownership. There is a process called Petition to Partition through Land Court which makes every effort to notify an heir and often the cost is higher than the value of the property. Once Land Court makes a determination the deed becomes "recorded" as opposed to "quit claim". It cannot be appealed.
Usually a mortgage is not possible on property with cloudy title and often they are purchased by investor's hoping for future profit. There are times an attorney can have title insurance written on a property where title issue is understood but not likely to clear. Another possibility if the defective title relates to a specific piece of a whole is to remove that piece from the mortgage. If the title flaw is discovered after a sale process has begun, it is up to the seller to get the titled cleared. If that is not possible and none of the other options are available, you may need to walk away and find another property to love.
One solution that an investor might use is to fence it in and in 20 years the land may be theirs by right of adverse possession. If you use a parcel for 20 years in MA without any objection you can acquire clear title.
