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VeraCaUSA

Defective Title

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Texas:

 

Does a defective title affect the market value as far as property taxes.  

 

A claim was filed with the Title Insurer after neighbors began challenging the property lines.  Long story short the Title Insurer decided to pay off face value of the policy since they couldn't explain the error.

 

 

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24 minutes ago, VeraCaUSA said:

Does a defective title affect the market value as far as property taxes.  

 

Your property taxes are based on the assessed value of the property. That's not going to change as long as the property lines in the county records are not challenged.

 

If you own the property in question, you're free to pay for a survey that can correct the property lines in the county records (if need be) or document the property lines for when you go to sell the property.

 

Why didn't the title company order a survey?

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Sorry about the delay in replying.

 

As far as I know they did hire a surveyor however despite being situated in a subdivision that was originally platted in 1896, several houses including mine have never been platted as lots. 

 

While the description in the deed states beginning at the SW corner of a lot of land conveyed to Mr. Smith to Mr. Jones in 1904, the problem is that the 1904 description for the lot of land begins at a stake 40 foot from the NW corner of Block X.  So what corner is the NW corner of Block X .   

 

The red lot is the one that is more probable describes the lot that was convey in 1904 and the lot in the red block on the left being the lot described by the legal description given in my deed yet that is dedicated ROW that had never been accepted.   And when the blue lot is used it loses 10 foot on the right  which the neighbor was claiming and 20 foot on the left due to a dedicated alley.   

 

What is peculiar is that if one said the blue corner was the NW corner, which is the one being used, then it would stand to reason that the NW corner of the lot across the street would be the # 3 corner.  Yet the lots all  cite # 2 as the NW corner of their  lot.

image.png.be2357fb9879971a365a50f798798ac8.png

 

 

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That's all beyond me.

 

You're going to have to hire and obtain your own survey and not rely on what anybody else maybe did.

 

If there is still some doubt as to where your property lines are, you'll have to get a court to rule on where they are and then the county records and deeds can be corrected.

 

Not pleasant to contemplate the expense but best to get it cleared up now rather than when you have to sell your property.

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Yes, it could be really expensive which is the reason I was inquiring about submitting a notice of protest to the Appraisal District regarding the value of the property due to a clouded title.   

 

I thank you for your time in responding to my questions.  

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8 minutes ago, VeraCaUSA said:

I was inquiring about submitting a notice of protest to the Appraisal District regarding the value of the property due to a clouded title.   

 

You could do that but the assessed value has nothing to do with the market value of the property.

 

If you go to sell the property some years in the future when property values have substantially, the property line uncertainty will cost you a lot more money then taking care of it now, once and for all.

 

Or, you can price it well below market to get rid of it. Or, you can hope that a naïve buyer doesn't have the savvy to look into it.

 

Does your subdivision have a plat like this of the subdivision?  With something like this you should be able to tell where your property lines should be despite what the legal descriptions say.

 

 

Plat.JPG

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Yes, the subdivision has a plat filed for record with the County.  However, the lot is situated with in the area lined in red which was known as Block 9 even thought it isn't actually numbered on the plat.  [This is just the segment of the plat where the property is located.]

 

If you would like I can send you a copy of the actual plat, I figured they might not like too much specific information being put out for security reasons as such.  The line at top is a creek which drops down and curves to the left.  The parallel lines that run down to the right is a road.  The plat was filed for record in 1896 and was drawn to scale.

image.png.e89f139016090377bddb698b04f446c4.png

 

 

 

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1 hour ago, adjusterjack said:

Or, you can price it well below market to get rid of it. Or, you can hope that a naïve buyer doesn't have the savvy to look into it.

 

Well, if they buy title insurance they could get there money back like I did 👀  But I really am not interested in selling it but was thinking of maybe using it for a reverse mortgage or something like that when the time comes.  Plus, I wouldn't think a Bank would finance it without the lot being platted and such.

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No need to post the actual plat. I'm mostly guessing. Let's call the red bordered area the Tract. At some point after 1896 the owner of that tract sold all or part of it. You'll have to go back to that first deed and study the legal description. From there you'll have to go forward and study subsequent deeds to see the legal descriptions of any smaller parcels that were sold off. A surveyor will have to determine the location of the proper survey marker as the starting point. They are often located in the center of an intersection (as you can see in the plat I posted - the arrows in the four corners point to them). A surveyor can measure from those markers and determine the position of the property lines based on the legal description of each successive deed. I imagine any errors can be picked up that way.

 

15 hours ago, VeraCaUSA said:

was thinking of maybe using it for a reverse mortgage or something like that when the time comes.  Plus, I wouldn't think a Bank would finance it without the lot being platted and such.

 

Since a mortgage company or bank isn't likely to lend to a buyer as long as the property line is in question, I doubt if a reverse mortgage company would do it either.

 

 

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