1–10 Ownership and Title Myths Myth: If I have the deed, I own the property free and clear. Truth: A deed is evidence of ownership, but it is still possible that ownership might be subject to liens, mortgages, or easements. Myth: The owner named on the title always owns the property. Truth: Titles may not reflect beneficial ownership if trusts or other arrangements exist. Myth: Joint tenants always share property equally.
Fact: Joint tenants share equal rights, but contributions toward the property may be different, thus impacting the equity claim.
Myth: Quitclaim deeds ensure clear ownership.
Fact: Quitclaim deeds transfer whatever interest the grantor has without any guarantee of ownership or clear title.
Myth: If you stay on the property long enough, you own it.
Fact: Adverse possession requires strict conditions such as open, continuous, and hostile use for a statutory period.
Read Also:
- https://insightfullawhelp.com/25-property-disputes-explained-questions-and-answers/
- https://insightfullawhelp.com/20-must-know-property-law-questions-for-buyers-and-sellers/
- https://insightfullawhelp.com/40-property-law-faqs-for-real-estate-investors/
Myth: Property left by a will is entirely dispute-free.
Reality: Wills are disputable. There can be disputes regarding unclear terms or an omitted beneficiary.
Myth: Property acquired before marriage remains separated always.
Reality: Marital property can sometimes be separate; however, the property can become marital if commingled or if used jointly.
Myth: Adding someone to a title automatically gives that person half ownership.
Reality: The ownership share depends on the agreement and legal framework.
Myth: Property boundary lines are always accurate on the deed.
Truth: Deeds often rely on surveys, which can have errors or inconsistencies.
Myth: Title insurance isn’t necessary.
Truth: Title insurance protects against undiscovered claims or defects, providing peace of mind during a purchase.
11–20: Buying and Selling Myths
Myth: The highest bid always wins in a property sale.
Truth: Sellers can choose buyers based on terms, contingencies, or other preferences.
Myth: You can always back out of a property deal.
Truth: You may face penalties or even lawsuits if you back out after signing a contract.
Myth: Real estate agents always represent the buyer’s interest.
Truth: Agents may represent the buyer, the seller, or both depending on the agreement.
Myth: If a home inspection misses some something, the seller is liable.
Truth: Sellers are not liable when something is missed by inspection unless they hid it on purpose.
Myth: The “as-is” sale exempts the seller from liability.
Truth: In most states, the seller must still disclose known defects.
Myth: If the deal doesn’t work out, the earnest money belongs to the seller.
Truth: Earnest money is returned if contingencies such as financing or inspections fail to materialize.
Myth: Once a closing occurs, there is no further liability.
Truth: Issues may arise post-closing in the form of title defects or undisclosed defects.
Myth: Sellers have to go through an agent.
Truth: Sellers can sell their property personally, known as For Sale By Owner, or FSBO and seek legal assistance.
Myth: Any cash offer trumps a financed offer.
Truth: Cash can be better. But sellers tend to focus more on terms, price, rather than the fact that it was paid in full.
Myth: Estate contracts are always non-negotiable.
Truth: Most clauses including price, contingencies and closing dates may be negotiated
21–30: Miscellaneous Property Myths
Myths:
Myth: Fences always mark the true boundary of a property.
Truth: Fences may not correspond to legal boundaries and require surveys for accuracy.
Myth: Renters can’t claim ownership of a rented property.
Truth: Adverse possession may allow renters to claim ownership in rare, specific circumstances.
Myth: A verbal agreement to sell property is legally binding.
Truth: Most property transactions must be in writing to be enforceable under the Statute of Frauds.
Myth: You can do whatever you want on your property.
Truth: Zoning laws and HOA rules may restrict the use of your property, such as building or landscaping.
Myth: Neighbors are always responsible for trees that fall on your property.
Truth: It depends on whether the tree was healthy or neglected.
Myth: Paying property taxes gives ownership rights.
Truth: Paying taxes alone does not establish ownership unless combined with adverse possession criteria.
Myth: If you discover an error on your property survey, you own the disputed land.
Truth: Disputes are settled by legal deeds, not survey errors.
Myth: Properties with no mortgage cannot be foreclosed.
Truth: Properties can still be foreclosed for unpaid taxes or HOA dues.
Myth: HOAs cannot enforce old rules.
Truth: As long as HOA rules are valid and recorded, they can be enforced unless changed or revoked.
Myth: Property ownership automatically includes mineral rights.
Truth: Mineral rights may be separately owned or leased, depending on the deed.