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A trunk title is an industry slang for a title deed that has not be filed at the county record office for official recording.
The term originates from the metaphor of the owner keeping the deed in a trunk at home instead of putting it in the public records.
This can sometimes happen when homeowner know no better with what is the next course of action after acquiring a property without the services of players in the value chain.
This is because the presence of such players, which include professionals, would undoubtedly see them sending reminders to the owner to file the deed with the county records office.
The absence of them could cause the owner to forget or simply ignore it.
Should the property be sold in the future, the buying side could demand the seller to produce the original document as evidence of ownership.
This can in turn delay the real estate transaction.
Such delays can cause a later disbursement of sales proceeds and might even cause an additional mortgage payment that has to be paid to the lender.
These situations can send representatives of title insurance companies into meltdown.
As recording the deed with the relevant government agencies serve as an official public record of a property’s rightful owner, homeowners should remember to get it done as soon as possible after buying a home.
When selling the house, a problem like this can potentially send buyers back-peddling. It can also be used as a justified reason to renegotiate the terms of purchase.