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No Issues: Understanding the Importance of a Title Search

Monday, July 27, 2020

The process of selling and buying a new home can oftentimes be messy and complex. Such transactions are usually the most significant that anyone will make in their entire lives.

That's why a competently executed home sale tends to involve an army of lawyers, brokers, and advisors.

One of the most vital aspects of the home buying and selling process is the title search. Put simply, the title search process is when a professional researches the ownership of a house to ensure that there are no outstanding issues or liens.

A 'clean' title is absolutely essential for a home sale to go through. But what is involved in a property title search? Who does it benefit? Read this guide to find out more. 

1. How Do Title Searches Work?

Put simply, title searches are a thorough examination of all public records related to a property that is up for sale.

Since the documentation involved can be complex, this job is usually performed by a lawyer or a specialized title search agency.

They will access court records, property deeds, and more to determine whether there are any outstanding issues. If you're wondering "what do title reports look for?", the answer is extensive.

They look to determine who truly owns the property and whether there are any outstanding loans, liens, or judgments on the property. They also look to see if there are any overdue property taxes.  

2. Importance of a Title Search for Buyers

If you're buying a house, conducting a title search is essential.

If you buy a house and find out later that there are outstanding loan payments on the property that the previous owner did not deal with, you might be liable to pick up the tab.

In addition, a title search will let you know whether the person you are buying from is actually the legitimate owner of the property.

With property scams on the rise across America, this is vital to know. 

3. Importance of a Title Search for Sellers 

If you are selling a home, you will also want to hire an attorney to conduct a title search on your behalf. 

You will want to ensure that you have a clean, marketable title for your home if you wish to sell it in good time.

A title search will ensure that nobody else has a claim on the property that you are trying to sell.

It will determine whether or not you have a 'defective' home title, which could be a serious barrier to selling your property. 

4. Why You Need Title Insurance 

Whether you're a buyer or a seller, title insurance is essential.

If you conduct a title search and find out that there are serious issues with the title, then title insurance will ensure that you are not left out of pocket.

It will cover the costs associated with a defective title.

For example, if you're a buyer who finds out halfway through the process that the title is defective, then your insurance can cover the money you have already spent on brokerage fees and property surveys. 

Learn More 

To learn more about why a title search is a vital part of buying or selling a home, don't hesitate to get in touch with our expert team today.

We can talk you through every step of the process to ensure that your next property transaction goes off without a hitch. 

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