Title Company
Estate and trust-owned real estate can present title questions that are not always apparent at the beginning of a sale. A title company examines the public record and helps identify ownership, liens, judgments, and other matters that may affect the transfer of the property.
Before real estate can be transferred to a buyer, the parties need to know that ownership can be conveyed properly. A title company helps examine the property's ownership history and identify issues that may need to be addressed before closing.
What a title company does
A title company searches public records relating to the property and identifies matters that may affect ownership or transfer. These can include mortgages, liens, judgments, prior deeds, easements, restrictions, and other recorded interests.
In a sale, the title company also helps establish the requirements that must be satisfied before title insurance can be issued and the transaction can close.
Why estate and trust properties can require extra attention
When an owner has died, the title record may need to be considered together with probate documents, a will, trust documents, or other evidence showing who has authority to transfer the property.
The person handling the estate should not assume that being named executor automatically resolves every title question. Likewise, when a trust is involved, the title company may need documentation confirming the trust's ownership and the trustee's authority.
Title issues may be discovered during the sale
A title search can uncover matters the family did not know existed. An old mortgage may still appear of record, a lien or judgment may need attention, ownership may not be titled as expected, or documentation from an earlier transaction may be incomplete.
Identifying these issues early can provide more time to resolve them before they threaten a closing.
The title company and attorney have different roles
A title company identifies title conditions and requirements and provides title-related services and insurance. An attorney provides legal advice about ownership, authority, probate, trusts, disputes, and how a legal issue should be resolved.
When a title problem requires legal interpretation or legal corrective action, the title company and attorney may need to work together.
When title guidance can be especially helpful
- It is unclear exactly how the property is titled.
- The home is owned by a trust.
- There are multiple owners or prior owners.
- A mortgage, lien, judgment, or other recorded claim appears against the property.
- The estate cannot locate important prior deeds or payoff information.
- The property is being prepared for sale and potential title problems should be identified early.
Quick Reference
- Confirm how ownership appears in the public record.
- Do not assume probate authority automatically resolves title issues.
- Provide requested estate or trust documentation promptly.
- Address mortgages, liens, judgments, and other title requirements early.
- Keep title documents with the estate's transaction records.
- Use an attorney when a title issue requires legal advice or interpretation.
Professional Tip
Start the process early!
Estate properties can involve additional documentation and title requirements. Order a preliminary title search before the property is listed for sale.
The title search will show the probated will and Letters Testamentary, which grant authority to the executor or executrix to sign on behalf of the estate. In the absence of a will, there is a similar process appointing an administrator with authority to sign as well.
If two spouses hold title as husband and wife as tenants by the entirety and one spouse dies, the property passes to the surviving spouse.
Ashleigh Johnson Parker
Acres Land Title Agency
Continue Your Journey
Need personal guidance?
Every estate is different. If your question involves legal advice, you should speak with a qualified New Jersey estate attorney. If you are dealing with an estate property or want to talk through next steps, Dennis can help.