Legal Definitions - curing title

Curing Title

Curing title refers to the legal process of identifying and resolving any imperfections, errors, or outstanding claims associated with a property's ownership records. The primary goal is to eliminate these issues, often called "clouds on title," to ensure that the ownership is clear, legally sound, and readily transferable to a new owner or acceptable to a lender. This makes the title "marketable," meaning a reasonable buyer would accept it without fear of future legal challenges.

Examples of Curing Title

• Scenario: An Unreleased Mortgage

  Imagine a homeowner, Sarah, wants to sell her house. During the title search, it's discovered that a mortgage from a previous owner, which was paid off 20 years ago, was never officially recorded as "released" by the bank. Even though the debt is long gone, the public records still show an outstanding lien on the property.

  Curing the title in this situation would involve Sarah's attorney contacting the old mortgage lender (or its successor) to obtain a formal "satisfaction of mortgage" document. This document would then be officially recorded with the county, removing the outdated lien from the property's public record and making the title clear for the sale.

• Scenario: Undiscovered Heirship Issues

  A family decides to sell a vacation cabin that has been in their family for generations. The last recorded owner was their great-aunt, who passed away without a will many years ago. While the family has always treated the cabin as theirs, the legal ownership was never formally transferred through probate court to her heirs.

  Curing the title here would require a legal proceeding, often a probate action or a "quiet title" lawsuit, to formally establish who the legal heirs are and to legally transfer ownership from the deceased great-aunt to the current generation. This ensures that all rightful owners are identified and agree to the sale, preventing future claims from other potential heirs.

• Scenario: Minor Boundary Encroachment

  A developer is purchasing a large tract of land for a new housing development. A new survey reveals that a small portion of an old shed belonging to an adjacent property owner slightly encroaches onto the developer's land by a few inches. This minor encroachment creates a technical defect in the title, as the exact boundary lines are not perfectly clear.

  Curing the title might involve negotiating with the neighbor to either move the shed, or more commonly, to sign a boundary line agreement or an easement document. This formal agreement, once recorded, legally clarifies the property lines or grants permission for the encroachment, thereby resolving the defect and ensuring the developer has clear title to the entire intended parcel.