Can I Sell My House Without the Title?
When it comes to selling your house without the title things can get hairy. Technically the answer is yes as the law doesn’t generally require you to warrant or clear the title before you sell your house. With that being said, it’s a good idea to have a clean title before attempting to sell your home as this can ward off potential buyers if you don’t. We know that selling your home in general is a confusing process especially if you’re not sure the title is clear so here’s what you need to know if you find yourself in this spot.
What Exactly Is The “Title”?
Your title is the legal document that legally owns your home. It shows all parties involved in the ownership of your property and it also lists any liens, government actions, taxes owed, or anything else related to your house. This is a crucial document you need in order to sell your house, but there’s a difference between a title and a “clear title”. Do you really need a clear title to sell your home? Yes and no.
What Is a “Clear Title”?
A clear title is one that contains no obstructions on it whatsoever. Every state has its own laws and statutes on what obstructions you’re allowed to sell a home with. Some states allow for an obstruction if it’s been more than three years since the issue happened, while others require that issue be resolved within six months. The most common issues that happen are taxes, unpaid bills from a previous owner, liens from contractors or homeowners, and outstanding bank loans.
An obstruction could even come from the court not knowing who has ownership to a property if you’ve had a divorce in the past. Basically, it’s not that big of a deal however it is something you’ll want to take into consideration when you’re selling your house as not having a clear title might hurt you significantly.
Why a Clear Title Is Important
When you sell a house, the entire transaction is hinged on your title being free and clear. This means that everyone involved in this process needs to have access to the title so they can be sure that it’s clear for transfer. Banks are even more stringent when it comes to clearing your title as they will not loan money on a property with a title that might be in jeopardy.
It’s also important to note that the title is a legally binding document and if you sell your home without one, you could be held liable for future debts and issues related to the property.
A Clear Title Means an Easier Sell
A clear title is an attractive part of your home to a potential buyer. Most buyers won’t touch your home, even if it’s a great property, because the title might be in jeopardy. Would you want to buy a home and spend all that time and money just to have future problems clouding whether or not you really own your home?
Not having a clear title also means that if a buyer has narrowed down the home of their choosing between yours and someone else’s, and one property doesn’t have a clear title, the buyer is more than likely going to go with the one that does out of convenience. Get the title cleared, and thank us later.
Can You Sell the House Without the Title?
Technically yes, but it’s a bad idea. The law generally doesn’t not invalidate your sale because you didn’t have the title cleared but again, you are better off to sell with a clean title. If you take away only this last line from this article – get a clean title on your house before you sell it. Simple as that.
Before You Sell Your House, Give Us a Call
Before you sell your home with or without the title, give us a call. Here at Quick Fix LLC we can give you a fair cash offer on your home today. That means cash in your hand and fast. Contact us today for your free home assessment.
