When buying a home a title search or property title search is done. A title search is the process of retrieving documents evidencing events in the history of a piece of property, to determine relevant interests in and regulations concerning that property.
Why Does A Homebuyer Buy A Title Search?
- Does the seller have ownership of the property?
This means does the seller have full ownership that he is able to sell it to you.
- What kind of restrictions or allowances pertain to the use of the land? These would include easements and other equitable servitudes.
Some properties have restrictions on building, for example a property that is a wetland. All potential issues would be highlighted in a title search.
- Do any liens exist on the property which need to be paid off at closing? These would be mortgages, back taxes, mechanic’s liens, and other assessments.
This is the most important part of the title search. You want to ensure that the property that you are purchaing is clear from debts. You don’t want someone to have a lein on your house!
Who Can Do A Title Search?
Anyone may do a title search. Documents concerning conveyances of land are a matter of public record. These documents are maintained in hard copy paper format or sometimes scanned into image files. The information within the documents is typically not available as data format as the records are descriptions of legal events which contain terms, conditions, and language in excess of data. A compent laywer will know what is written in the title.
What If The Title Company Made A Mistake?
Most buyer of a property will usually purchase title insurance, which protects the buyer from any title problems that may arise after sale, such as liens that were missed during the title search. The title insurance company issues a report and an insurance policy in support of its findings. This will protect you in case of error.
There are a variety of title searches which provide the customer with a report, but no insurance. Generally these are used for informational uses not when buying a home. The cost of a title can vary.
Title Searches are used when purchasing a home. Titles inform the buyer about leins and back taxes. The Title can also come with insurance to protect the sale.
When getting a title, the bank will charge you for their title search as well as your own. The cost of a title is not to much money according to Finweb.com, somewhere in the $100 area.
Some information was referenced to Wikipedia.
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The title is vital for homebuying, it will relay if there are leins or bad debt aginst youor property. Title searches can also offer insurance.