Buying a new home can be a nerve-wracking process as one has to go through endless negotiations and documentation to get their loan approved. It is essential to get the title verified by performing a title search prior to closing to identify any issues that may hinder the transfer of the deed. A property title search is conducted to confirm the land’s legal ownership by examining public records before investing in real estate transactions. It is usually performed by a title company and initiated by the lender. An accurate and timely title work assists property buyers in making informed decisions.
Performing a title search involves accessing the official records of the land, visiting several locations to verify the deed and finding any claims on the property. Generally, there are two types of title searching- a full coverage search and a limited coverage search. Other types include foreclosure guarantee search and non-insured reports. Most homebuyers opt for a title company to perform title searches on their behalf, as looking for multiple documents makes it a lengthy and tedious process.
An accurate and in-depth Title Search Uncovers
Disputes over ownership may arise when a property is transferred without proper title verification. Documentation errors, missing heirs or impersonation of real owners may result in the entire transaction being declared as void. Furthermore, the buyer will lose rights to the property. So, it is essential to perform an in-depth title search to reveal all technical records and claims against the property. The paperwork needs to be verified thoroughly, with proper corrections made in order to proceed with the sale.
Errors in Public Records
Filing and clerical errors can affect your property transaction negatively. The borrower may need to undergo financial implications to resolve them. Mistakes in paperwork or listing, missing figures, or signatures can cause a delay. A comprehensive title search avoids that may disrupt a successful ownership completion.
Chain of Title
In real estate, the chain of title refers to the historical record of ownership transfer conducted by a title company or an abstractor to verify ownership and ensure a clear title. Titles should not contain any liens, judgments or foreclosures that can hinder the transfer of title to the new owner. It is verified using various documents concerned with the property purchased. It includes financial records such as mortgage and deed of trust. Transfer documents, death certificates from joint tenants and foreclosure reports are also examined.
It refers to the claims against the property that can affect its transferability and limit its free use unless the title is cleared. These include easements, mortgage dues, liens, unpaid bills or taxes etc. These legal claims reduce the land value to be used as collateral to secure a loan. Encumbrance charges put a hold on real estate transactions and require the lender’s permission beforehand. It is advised to get the records examined at the sub-registrar’s office to ensure there are no registered charges and mortgage on the applicant.
Restrictions and Allowances
Deed restriction is another title issue that could make the property worthless as an investment. Boundary disputes and differing surveys could also create problems. Building bye-laws need to be checked properly to identify and follow restrictions and allowances regarding construction on the property. Covenants and easements have a huge impact on land so they must be verified efficiently during title searching.