Abeyance | Propertylogy

Abeyance

By on May 23, 2019

Abeyance refers to the suspension of title to property while clarity on the proper legal can be determined.

This is a banking term that is used most often after a mortgage is approved and the loan facility has been accepted by the borrower.

During the paperwork and legal work of closing the real estate transaction and the mortgage, issues can create a cloud on title that creates uncertainty to the actual legal owners of a property.

These events usually arise from unexpected claims.

Because it makes no sense to grant a mortgage for a person who ends up having no title to the property, abeyance would give the lender more time to finalize the proper legal documentation as the status of things get more clearer.

It is up to the borrower to settle things.

And to protect himself from further complications in future, title insurance might be useful.



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