The $35,000 mistake - Why you should review your title report.

You hire a broker to represent you in the sale of your house, and eventually you get an offer you can live with. The buyers are ready, willing and able to close the deal. Sounds great, right?

Well, not if your driveway encroaches on the neighbor's property and you can't deliver clear marketable title to your buyer. A Mississippi court recently ruled that the seller owed more than $35,000 to their listing broker because the seller was unable to perform even though the broker bought them a ready, willing and able buyer.

This is an example of why we recommend eliminating surprises by ordering your preliminary title report upfront.

 While we don't know whether this particular boundary dispute would have been discovered without a survey, there are other surprises that sometimes show up in title searches. For example, do you have the same name as somebody who owes money to the state? Are there old liens on your property that should have been released but are still in the records? By fixing defects in title ahead of time, you can save yourself a lot of time and money during the closing process. And who knows, you just might save $35,000.

Thanks to Realtor.org for alerting its members about this important topic. Talk to your real estate attorney to learn more.