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Show HOME BUYER CLINIC By William J. McAuliffe. Jrjnl Executive Vice President American Land Title Association False Security Buyers of new subdivision homes have been known to experience a false sense of security where land title problems are concerned. Their reasoning in such instances in-stances generally holds that new homes have not had prior owners so the titles must be clear. The experience experi-ence of several sev-eral buyers McAuliffe in a southeastern south-eastern state illustrates the costly nature of such assumptions. Years after purchasing their real estate, these buyers were shocked to learn that a strip of land 80 feet wide ran through their properties and was about to be sold at public auction. Investigation disclosed that the strip was part of the bed of an old railroad, whose charter had been revoked around the turn of the century. cen-tury. No prior evidence of the outstanding title of the railroad had been discovered in the public records. Fortunately, the buyers were protected by owner's title insurance issued at the time of their real estate purchases. The title company com-pany purchased that portion of the strip which passed through the properties of its insured, and paid related attorney fees and costs, to avert financial loss for the buyers. The absence of a house or other structure on land is no assurance at all that costly title problems will not emerge. Precautions are recommended for any home buyei whether the residence resi-dence is newly built or has had many prior owners. Free information on things to consider in home buying is available upon written request from the American Land Title Association, Associ-ation, Box 566, Washington, D.C. 20044. |