Land ownership is a cornerstone of the American dream, offering a sense of permanence and investment in the future. However, I’ve seen how land title issues can pose significant challenges to this dream, particularly in Florida. As a landowner, or someone looking to buy land, it’s important to understand common land title problems, and not get overwhelmed by them by having the knowledge on how to resolve them. In this article, I delve into these issues and provides practical solutions to ensure clear and marketable land titles. The usual disclaimer applies here: I’m not a licensed attorney, and I highly recommend working with your title company and real estate attorney when it comes to ironing out title issues related to Florida land.
Introduction
When it comes to buying or selling land in Florida, having a clear land title is essentially a requirement in order for the property to have resale value/be sold on the open market. A land title serves as the legal proof of ownership and is essential for the transfer of property rights. However, various issues can “cloud” or “break” the chain of title, leading to disputes, legal complications, and financial losses. This article explores the most common land title problems in Florida and offers actionable solutions to resolve them.
1. Probate Issues
Problem: When a landowner passes away, the property is likely to be subject to probate, even if they had a will. This legal process can delay the transfer of ownership and create uncertainty about the rightful heirs.
How To Resolve It: To resolve probate issues, it is essential to work with an experienced probate attorney. The attorney will help navigate the probate process, ensuring that the deceased’s assets are correctly distributed according to Florida law. In cases where the deceased left a will, the attorney will assist in validating it and transferring the title to the rightful heirs. Please note, there’s also several things you can do before a landowner passes away that can avoid probate. At All Acres when we buy land where probate is needed, we connect you with a qualified probate attorney, pay their fees on your behalf, and also the fees related to title and closing.
2. Unpaid Property Taxes
Problem: Property taxes become due on all Florida land November 1st of every year. If left unpaid, these taxes become delinquent the following April 1st. Counties then host tax lien certificate auctions where investors pay the taxes, and earn interest on that unpaid amount when it is eventually repaid (either by the taxpayer, a different payer, or when the property is auctioned to a new owner.) A lien is placed against the property while taxes remain unpaid, complicating the transfer of the land title. Florida counties have the authority to auction off properties with delinquent taxes after a minimum of two years of non-payment, potentially leading to the loss of ownership.
How To Resolve It: Resolving unpaid property taxes is fairly straightforward – you pay off the owed taxes, interest, and penalties, and the lien is removed. It’s a good idea to contact the county tax collector’s office to obtain the exact amount due. Usually you can make your payment online, or if you’d prefer, you can make it over the phone. Clearing the tax lien will allow for a clear title and prevent future complications. When we at All Acres buy land with tax liens, we pay these off as part of closing.
3. Boundary Disputes
Problem: Boundary disputes occur when neighboring landowners disagree on the precise boundaries of their properties. These disputes can arise from incorrect surveys, unclear property descriptions, or physical encroachments.
How To Resolve It: To resolve boundary disputes, you would first hire a professional surveyor to conduct a new survey of the property. A licensed surveyor will provide an accurate and updated property map, clarifying the boundaries. If disputes persist, it may be necessary to seek legal mediation or litigation to settle the matter definitively. Sometimes, it’s easiest to grant a neighbor an “access easement” if the encroachment is minor and doesn’t affect your property’s usability.
4. Fraudulent Deeds
Problem: Fraudulent deeds involve the illegal transfer of property ownership through forged documents or fraudulent means. This can lead to severe legal and financial consequences for the rightful owner.
How To Resolve It: You best protect yourself against fraudulent deeds before you purchase your land. When under contract to purchase land, use a title company to help manage the transaction. Your title company will perform a thorough title search, and this search will reveal any irregularities or suspicious activity in the chain of title. Additionally, purchasing title insurance provides an extra layer of protection, covering potential losses from title defects and fraud. At All Acres, we use a professional title company to manage every transaction, and we always purchase a title insurance policy when buying land.
5. Missing Heirs
Problem: When a property owner dies intestate (without a will) or with unknown heirs, identifying and locating all potential heirs can be challenging. This situation can complicate the transfer of the land title and create legal disputes.
How To Resolve It: Engage a probate attorney or a professional heir search service to locate missing heirs. These experts use various methods, including genealogical research and public records, to identify and contact heirs. Once all heirs are identified, the property can be properly probated and the title cleared.
6. Easements and Encroachments
Problem: Easements grant specific rights to use a portion of a property, such as for utility lines or access roads. Encroachments occur when a structure or improvement extends onto another person’s property. Both can impact the usability and marketability of the land.
How To Resolve It: To address easements, review the property deed and title documents to understand the terms and conditions. Negotiating with the easement holder or seeking legal advice may help modify or remove unwanted easements. For encroachments, a survey can determine the extent of the issue, and legal action may be necessary to resolve disputes and clear the title. Again, if the encroachment is minor and doesn’t impact your property’s usage, simply granting an access easement to the neighbor can be the easiest solution. Consult your real estate attorney for more information, or how to implement this.
7. Unreleased Mortgages
Problem: When a mortgage is paid off, the lender should issue a release or satisfaction of mortgage document. However, believe it or not, sometimes this doesn’t happen! Failure to have this document recorded leaves a cloud on the title, indicating an outstanding debt that doesn’t exist.
How To Resolve It: You’ll need to contact the lender to obtain a release of mortgage if it hasn’t been recorded. Submit this document to the county recorder’s office to clear the title, if the lender doesn’t record it for you. If the lender no longer exists, a real estate attorney’s assistance may be required to prove the mortgage was paid and obtain a court order to release it.
8. Errors in Public Records
Problem: Clerical errors, mistakes in recording, or outdated information in public records are more common than you think, and can create discrepancies in the land title. If unaddressed, these errors can lead to disputes over ownership and legal challenges.
How To Resolve It: Contact a title company and ask them to run a comprehensive title search on your property to identify and correct any errors that may or may not exist in public records. If any issues come up in the title search, you can work with the title company or real estate attorney to file the necessary documents and rectify inaccuracies. It can pay to be proactive here and occasionally run a title search on your property in order to prevent future title issues.
9. Liens and Judgments
Problem: Liens and judgments against a property, such as mechanic’s liens or court-ordered judgments, can encumber the title and hinder the sale or transfer of the property.
How To Resolve It: Pay off any outstanding liens and judgments to clear the title. Obtain a release of lien or satisfaction of judgment document from the creditor and record it with the county recorder’s office. Working with a title company can ensure all liens and judgments are identified and addressed before closing. When All Acres buys land with liens or judgements, we’ll attempt to negotiate some of these liens and judgements, and ultimately we’ll pay these off as part of closing.
Summary and Next Steps
Navigating land title problems in Florida can be complex, tedious, and time-consuming, but understanding these common issues and a basic understanding of how to resolve them is essential for protecting your investment. Whether dealing with probate issues, unpaid property taxes, boundary disputes, fraudulent deeds, missing heirs, easements, encroachments, unreleased mortgages, errors in public records, or liens and judgments, taking proactive steps to resolve these problems is always a good idea. You’ve already done a smart thing by simply reading this article!
At All Acres Land Company, my team and I specialize in addressing these challenges and ensuring a smooth and clear transfer of land titles. If you’re facing land title problems and looking to sell your land in Florida, reach out to us. We’re here to help you navigate these complexities and get your land sold.