In the world of real estate, having a clean title is essential. One of the most critical steps in achieving this is the cancellation of encumbrance. By definition, an encumbrance is any legal interest that someone other than the owner has in the land.
Why You Should Remove Encumbrances
Most owners seek the cancellation of encumbrance to prove that their property is unburdened. Without this cancellation, you may find it nearly impossible to sell the property or secure a mortgage.
Typical Property Burdens
The process begins with recognizing the specific nature of the claim against your title. You will likely encounter one of the following:
Unpaid debts or home loans that use the property as collateral.
Easements: Rights granted to third parties to use a portion of the cancellation of encumbrance land, such as utility companies.
Property Restrictions: Rules that limit how the property can be used or developed.
Steps to a Clean Title
The cancellation of encumbrance procedure for the cancellation of encumbrance usually follows a specific legal path.
Conduct a Search: Start by cancellation of encumbrance ordering a title report to see exactly what is recorded against the property.
Pay Off Obligations: You must settle any financial disputes or balances that led to the claim in the first place.
The creditor must provide a "Release of Lien" or cancellation of encumbrance "Discharge of Mortgage" document.
File with the Authorities: The final step is filing the cancellation with the county or municipal clerk to update public records.
Challenges and Legal Considerations
The cancellation of encumbrance is not always a simple task. Sometimes, historical claims from decades ago require a judge's intervention to be officially removed.
The Bottom Line
Ultimately, clearing cancellation of encumbrance your title ensures that your most valuable asset remains marketable. Do not wait until you are in the middle of a sale to check for these legal hurdles.