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
Contractual agreement between a commercial or industrial rental property owner and an individual or firm who agrees to maintain the property. Management agreements specify the nature of ...
Person leaving from work to spend time in leisure activities. pay in full the balance on a debt either at or before the maturity date. Penalties may be assessed on prepaying a mortgage. ...
Permission to do something that differs from the basic zoning requirement. An example is a homeowner receiving special authorization to build a two-family house in a single family zoned ...
Air rights, in general, cover the right to occupy or use empty space. But what are air rights, and why are they important? Two major types of air rights can be explained; however, ...
The income earned on an investment, typically stated as a percentage of the market price ...
Distribution of population over a given area of land. ...
A Homeowner’s Association (HOA) is an organized group of homeowners in a home subdivision, condominium, or cooperative complex. They come together and found a Homeowner’s ...
Structure or part thereof, such as a building, that obstructs or overlaps another property. Infringement on the property or rights of another individual or business. ...
Situation in which a person guilty of breaking a contract is required by the judge to fulfill his duties. Specific performance is required only if the item or subject of the contract is ...
Have a question or comment?
We're here to help.