Title Search
Definition of "Title search"
A home seller and a home buyer agreed upon a fair market value and the deal is off to closing the sale. One of the next steps is running a title search.
But what is a title search?
The best title search definition would be something like an investigation concerning the title records of a property as a way to assert its legal ownership. A process of reviewing public court records and other documents to ensure there are no liens, claims or restrictions recorded against the property in question and the home seller has the right to sell the home for the home buyer. Any deficiency of title – including mortgages, and encumbrances – are checked on this beginning stage of a closing called “title search”.
Usually performed by a title company, a title search is crucial, however, having it doesn’t exclude the importance of also having title insurance. And the explanation behind that thinking is simple: while title search has the mission of uncovering all mentioned above, there might be liens deeply hidden, document errors or even liens that are still in process of becoming a lien, although the action that will ultimately cause the lien has already taken place. So, title insurance helps the home buyer to overlook the problem and have the insurance company deal with it financially. One can do the title search by him or herself but it’s not the best idea; navigating through boring complicated documents and finding your way around the courthouse can be confusing, and you want the title search to be the clearest possible. One slight overlook can lead to you buying a house with a lien and/or other problems.
Plus, the fact is that during closing a home buyer is trying to find negative points that can reduce a little bit of the price of the house. When the preliminary report comes, you can try to make the sale contingent to the home seller fixing whatever issues the house has before they become your problem. Note: it’s important, however, to include your real estate agent and maybe even a real estate lawyer on this discussion because it’s not every issue that can lead to a reduction or even a withdrawal from the negotiation.
Real Estate Advice:
Buying a home without a title search is crazy! Doing a title search without finding a real estate agent to guide you through is even crazier; find one now!
Popular Real Estate Terms
The basic definition of an acquisition loan is the kind of loan that gives a company the funds necessary to make a purchase. The type of investment depends on the company’s activity, ...
Notice of a pending suit; a public notice given to prospective purchasers and any one else considering an interest in property that the title is being legally challenged, and the outcome is ...
Used primarily by real estate corporations as a means of restructuring and reorganizing existing debts. Creditors must vote on a debt-paying plan and a judge must give approval. It provides ...
Surface level of water. ...
Initial user of real estate property, such as the first tenant in a newly constructed apartment building or office building ...
Same as term graduated lease: A rental stipulation a varying rental rate. Rental rate are determined tied to periodic appraisals or an inflation or an inflation index. The provision is more ...
In everyday discourse, a merger defines the combination of two entities, be it real estate or two companies, into a single and legit one. We should make a difference between a merger and ...
Typically, a waiver means remission or giving up on a particular claim. You can find the term waiver widely used in real life, finance, and real estate terminology. How do waivers work? A ...
Direct line of descent as from father to son. An example of a lineal hereditament would be passing of the title of real property by virtue of a will to the first-born son. ...
Have a question or comment?
We're here to help.