The process of purchasing a home includes a set of complex procedures. It starts with the initial step of searching for the house that fits your budget and needs and concludes with gaining its ownership. Some of them are mandatory, which otherwise could risk the entire investment. Reviewing the title, as well as the profile report of the property, is one such important step.
Property Profile vs. Title Report
A property profile report involves a precursory screening of the ownership and financial status of an estate. This preliminary title report is different from the full coverage title report, which is created as documentation for title insurance. The difference is that the profile is non-insured whereas the full coverage title report is documentation for title insurance.
It means that though the information provided by the property profile is accurate, it is not guaranteed. Moreover, the documents concerning conveyances of land are a matter of public record. Hence, anyone who wishes can do a title search and put together a property profile. Such a profile may not be comprehensive, and buyers who are serious about investing in property should wisely contact a title company.
The importance of Title Search
Reviewing the title and extracting a detail property report is one of the critical steps before investing in a real estate property. A comprehensive title report is necessarily required by Mortgage firms, which make Title service a crucial part of commercial mortgage solution.
- A title report helps the potential buyers in many ways as it validates the legal rights to the property by the present owners. The report includes the examination of legal records and easements.
- Apart from checking for the restrictions or allowances on the use of the property that comprise the servitudes, real covenants, easements, etc., the title search also helps to find any pending liens that exist on the property. Once identified, the owners can be notified to get them repaid before the property’s ownership is transferred.
- The report also checks if a third-party holds any legal rights on the property. For instance, the local administration could have reserved a legal right to strip a part or the entire property for putting water or sewer pipes, or planting power or communication lines. Also, it could happen that a neighbor has been given a legal right to the estate’s driveway by the owner.
Securing A professional title report, be it non-insured or insured, is the ideal way to initiate early-stage delinquency, closings of equity and home improvement loans as well as credit due diligence.
Who needs a Title Report?
Apart from the buyers, some of the parties that could be interested in acquiring a Title Search report usually include lending institutions such as banks or mortgage firms, realtors, mortgage servicers as well as property appraisers. The report comes handy especially while purchasing the foreclosure properties.
The dedicated title firms specialize in conducting an exhaustive title search. Also, the streamlined search mechanism they follow to compile a title report has better accuracy and quality.
What information can be accessed from Title Search?
A detailed Title report includes some of the essential aspects that related to Title search; these details could enumerate the findings such as Loss Mitigation, Legal, Vesting and Taxation. The report also includes the findings on the current owner search, which categorically enlists the judgments and liens against a property. It also provides tax information as well as the full legal and vesting record of the property, which could go up to 30-40 years in the past or make a comprehensive search of at least two previous owners. The abstractors could require around 2-4 business days to furnish the details, though the time required usually depends on the features demanded by the concerned party.
The Loss Mitigation Report focused on identifying various types of liens against a property that haven’t been cleared by all the previous owners. The information ensures the estate is has a clear title and is free from claims and charges before being passed to the new owner. By providing these critical details, the report on loss mitigation fills the void that is left uncovered by current owner property report and full title policy.
Subsequently, a comprehensive report on Legal, Vesting, and Tax, offers a combined full legal description of the property. It also describes in detail the full vesting of the property and the real estate tax information for delinquencies and payment status. In short, it offers an ideal solution for the parties who wish to verify the legal description, current vesting and real estate tax information of the property.
Thus, a comprehensive title report on any property is necessary when it comes to a Mortgage firm’s ability to disburse confidential and efficient solutions to their customers, which make Title service an essential aspect of commercial mortgage solution.