Q: H&w own home joint tenets by the entirety. Wife solely has judgment. Can title pass?
Wife bought house individually, but they were married. Several years later they executed a quit claim deed transferring title to joint tenets by the entirety; now, roughly 10 years after the quit claim deed they are selling. This Judgement is new. In order for new buyers to secure title insurance; must that Judgement be paid?
A:
Thank you for asking the question!
Title insurance guarantee the title against the future claims (after the title is obtained). So, existing liens or claims are not guaranteed by title insurance. But, it happens that an existing lien or judgement can create future claims over title. In that case, title insurance requires removal of these claims at the time of insuring the title.
This is merely discussion of general laws and not a legal advice. For a comprehensive advise, more specific facts and investigation are needed. I recommend you consult with an attorney in more detail.
A: If I were the closing attorney, I would disclose the judgment to the title company, but I am very confident that the title company would not have any issues with it. A judgment against only one spouse in a tenancy by entireties ownership does not place a lien against the property in NC. This judgment would most likely not need to be paid to pass good title in NC.
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