Buying a property is an exciting and engaging process. But have you ever wondered if the property you're about to buy is legally sound? To ensure that your dream home doesn't turn into a nightmare, you need to conduct a property title search. In this article, we will discuss some of the most important things to consider when investigating the history of a property.
What is a Property Title Search?
A property title search is an investigation of public records to confirm a property's legal ownership. It detects any title defects that might jeopardize your purchase. If that sounds too complicated, don't worry! You have stumbled across a great resource for learning about property title searches.
Why Is Title Search So Important?
Why bother with a property title search? The simple answer is that It protects you. It ensures that the person selling you the property is the actual owner and that there are no hidden liens, disputes, or restrictions that could potentially disrupt the transfer of ownership.
Types of Title Defects
Title defects can appear in many different forms. They might be undisclosed liens, illegal deeds, missing heirs claiming a share of the property, or boundary disputes with neighbors. All of these issues must be addressed to avoid potentially major legal or financial implications for both the buyer and seller.
Steps in Performing a Title Search
A property title search involves several important steps. These will usually include:
1. Property Description
In order to secure the correct information, you must have a thorough understanding of the property's legal description. This includes its physical location and legal boundaries.
2. Review of Public Records
Next, visit the county recorder or assessor's office to access public records related to the property. Do not let the official nature of this step intimidate you. It is your right as a potential buyer to access this information. This can be very intriguing as well. Looking over old records is like looking into a window into your community’s history.
3. Analyze Chain of Title
The chain of title refers to the history of property ownership. You'll want to confirm a clear chain of title - meaning that ownership passed smoothly from each owner to the next without any gaps.
4. Check for Liens and Judgments
Make sure there are no existing liens or judgments against the property. This could include unpaid taxes, contractor liens, or legal judgments that could affect your ownership.
The Role of Title Insurance
Title insurance protects a buyer from financial loss due to defects in the title. Title insurance will cover the legal expenses and any financial loss if a title issue arises after someone has purchased the property.
Why do you need Title Insurance?
Title insurance provides a safety net, protecting your investment from unforeseen legal problems. These can arise if unnoticed title defects go unaddressed before the purchase.
Common Mistakes in Title Searches
Even the most detailed-oriented investigator can make a mistake from time to time. Let’s look at some of the common mistakes that affect a title search.
1. Overlooking Clerical Errors
Simple clerical errors can lead to major issues. Make sure every detail is correct in every document you review.
2. Ignoring Possible Heir Claims
If the property has been passed down through generations, there may be undiscovered heirs who could suddenly appear and claim ownership.
Conclusion
A property title search can be a bit daunting when considering all the details involved. With that being said it is still an essential part of buying a property. The best thing you can do for yourself is to enlist the help of a professional property title search company like Title Search Direct. Our dedicated staff will ensure your report is comprehensive and all legal matters are explained in plain speech - all while delivering top-notch customer service. Also, we are available nationwide. If you live in Florida, simply type "Florida title search" into Google - or go directly to our home page at titlesearchdirect.com. We would love to help you secure your dream property today!
