How to Get a Marketable Title to an Old House
A marketable title refers to legal ownership that is free from encumbrances, clouds of title and defects. State laws govern the valid forms of ownership and what constitutes a marketable title. Most states have enacted the Uniform Marketable Title Act, a recommended standard set of laws based on the historical New England system of title searching. The New England method of property title searching assumes that a title is valid if a title examiner can trace the title back at least 30 years. If there are no claims or clouds on the title within the 30-year period, the Uniform Marketable Title Act presumes that title is valid.
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Instructions
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Obtain your state's uniform marketable title act or property code. If you have owned your house continuously for at least 30 years, you may not need to conduct a property or title search, and you may have a marketable title by virtue of continuous ownership.
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Review your state's marketable title laws and review what is necessary to establish a valid chain of title.
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Find your local circuit court, register of deeds or county recorder's office. Each of these state agencies allows public access to land records and plat maps. You may have to pay nominal fees for copies of deeds and property abstracts.
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Search your jurisdiction's land records by address, plat map reference number or tax map identification number. In most cases, your property tax bill will contain this information.
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Review your records in reverse chronological order, beginning with the current year. If there are two owners, make sure that each owner signed the deed to a bona fide purchaser or drafted a gift or quit claim deed to the other owner, transferring her ownership.
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Verify that there are no recorded easements. If there are recorded easements, your title is limited by the easement, and although your state may view your title as marketable, most states view it as an encumbrance. This may affect your future property value, since a prospective home buyer purchases your title subject to an easement.
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Trace your title back for the minimum number of years your state requires to establish marketable title.
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Tips & Warnings
Conducting a title search involves at least a basic understanding of real estate law, and the process can be overwhelming to a novice. In most cases, if you finance your home, your lender will require marketable title and will order a title search on your behalf. Alternatively, you can order a title exam through a local settlement agent or real estate attorney. Typically, nonattorney examiners will charge you a flat fee, but attorneys typically charge hourly rates. Furthermore, some states prohibit nonattorneys from conducting title searches and examinations as the unauthorized practice of law.
Although most states have incorporated the act by state statute, the time period necessary for title examiners or attorneys to conduct their title searches varies. For instance, in some states, owners may have marketable title if they can show a valid chain of title for 10 years.
The information in this article should be used for general guidance. Because of the fact-sensitive nature of legal claims, seek the advice of a licensed attorney in your state or contact your state's bar association for information on pro bono legal assistance.
