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Title Risk
A title risk refers to anything that might impede the transfer of a title from one owner to another. When making a property purchase, a buyer is always running the risk that someone will make a title claim on the real estate parcel. Some common title claims come from property line disputes and disputed ownership interest. A land purchase defines the boundaries of the parcel being bought. However, land owners on different sides of the property may dispute the boundaries at any time for a number of legal reasons. A smart land buyer will have a survey done before finalizing the sale. If a land owner in the past did not sign off on the sale of the property, they still have a legal claim. At any point in the future, they can make a claim on the property based on that past ownership. A title survey can clear this.