Importance of Real Estate Title Search

A real estate title search ensures that you have a clear title to property you wish to purchase. There are many ways various people or courts can claim an interest in property. The only way to uncover these recorded interests is thorough a title search. A title insurance company is experienced at searching court records for the purpose of completing a description of the property and finding any claims against it.

Complete Property History

When you read a title search, it’s like reading a history lesson about the property you wish to purchase. There are many different reasons why others may have recorded a claim against the property.

  • Court ordered judgments
  • Liens
  • Internal Revenue service
  • Easements
  • Covenants
  • Lenders
  • Creditors

Without a title search it’s quite possible for property to change hands without the buyer knowing the claims exist. If you purchase property without buying title insurance, the claims are still valid and remain with the property. It can be quite a shock when someone decides to try and seize your property for a claim settlement when you thought it was free and clear!

A base title search essentially begins with the present and rolls back to the original recorded documentation of the property’s existence. Once the search is completed, a title insurance document is issued.

Insurance Against Defects

The title search results in a document which lists the recorded findings related to the property. Any purchase or sale, claim or covenant recorded against the property is listed. The title insurance company then extends title insurance. The title insurance insures you against future claims due to something which has happened in the past that was not included in the title search or was not recorded in the public records. These are called title defects.

Getting clear title to your property before closing the real estate sale is critical. The only way to get clear title is to do a thorough title search which reveals any claims or rights to the property which make your ownership questionable. Even better is the fact the title insurance covers hidden risks associated with the property. These risks include forged documents, fraudulent acts and defective recordings.

Being licensed companies, they represent a system that allows the people and businesses involved in property transactions to have legally binding documents that keep track of all transaction records. Furthermore, if the borrowers continue to utilize the escrow service while paying their mortgage payments, they can have the company put the mortgage, taxes and insurance all together in one monthly sum, providing a great deal of convenience.

Owning a home is the future of a family. It shouldn’t have to be a difficult and frustrating process. Let the capabilities of qualified and proven residential title and escrow services handle your needs and provide the objectivity and legal backing that your investment demands.

A real estate title search protects you in a number of ways. When you obtain the title insurance, you know everything has been done to protect your new interest in the property.