Title searches are necessary not only for issuing title insurance but also for closing on the property — completing the purchasing process. Any outstanding issues must be satisfied and removed before closing can take place. Different ways to title a property include tenants in common, joint tenants, right of survivorship, or a life estate. Also, since a piece of land can be used for many purposes, the owner of the property itself may not hold title to the mineral or utility rights.
Since there are so many things that can go wrong with property ownership — liens for unpaid taxes or loans, easements claimed by the city, errors in recording, for example — title insurance protects the property owner from a later discovery of these issues. Whereas the typical insurance policy, such as homeowner's or automobile insurance, covers events that take place after the policy is issued, title insurance does the opposite.
It covers events that have taken place before the policy is issued. If a lien or judgment against the property is not discovered during the title search and you buy the house, that lien or judgment can become your legal responsibility. You can purchase title insurance to protect yourself and your mortgage lender from issues that might be discovered later.
Costs for a title search and title insurance vary by location. They also depend on the purchase price and loan amount. While you might be able to perform a title search yourself, you would have to comb through a large volume of documents. It would be better to trust such an important matter to professionals with training and expertise in this area. Your email address will not be published.
Taking the reins this year is association veteran Leslie Rouda Smith. Having a title search performed is for your own protection. Here are the top 5 reasons why this step should not be overlooked. The first and foremost reason to have a title search performed is to validate that the current sellers are in fact, the true owners of the property. You will also be able to see how many times the property has changed hands.
It also will produce any other names that are connected to the home…like an uncle or aunt who might have co-signed back in the day and have never been removed from the title. A lawyer or title company usually performs the search, which is most often initiated after the seller and buyer execute a contract. The company or lawyer generally does the sleuthing at the office of the county or municipal clerk where the property is. Many of the necessary records are now available online.
A thorough title search will also likely include details about mortgages attached to the property, street and sewer assessments, taxes, and any other title problems present, she says. Once all the information is gathered, the title company or lawyer will create a report that reveals what has been found. Here are some common issues that a title search mighty uncover, along with corresponding strategies to resolve them:. Break in the chain of title. This issue can appear when there is a missing deed in the chain.
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