During a real estate transaction, it is important for there to be a clean title. Certain title defects can require clearing prior to that transaction, perhaps extending the amount of time it takes before things are finalized.
This is even true during eminent domain cases. For instance, one common title defect is when there is a claim of ownership from another party. Two people may simultaneously own the same property, such as if they purchased it together or inherited it jointly. Both have a valid ownership claim.
In an eminent domain case, this can make the situation more complex. The government is going to take the property and pay just compensation to the owner. But who is the legal owner of that property? Who has a right to this fair market compensation? Who needs to be involved in negotiations?
What are some other title defects?
Joint claims of ownership are just one type of title defect, but other issues include:
- Liens against the property, such as a tax lien or a mechanic’s lien
- Incorrect filing procedures with property ownership paperwork
- Inconsistencies in wording between documents, such as the deed and the title
- Financial judgments against the property or unpaid loans, such as a mortgage loan
That does not mean that eminent domain is impossible just because title defects exist. But it certainly does add a level of complication to the process and may make it take longer for just compensation to be paid to the owner. As such, it is important to understand exactly what legal steps to take to rectify the situation.