Title search are an important part of the real estate process it is helpful for buyers, and also sellers, to be familiar with. Real estate law can help buyers successfully negotiate their real estate transaction which can include the process of conducting a title search.
The importance of a title search during the real estate process
A title search refers to the process of looking at the legal records of the property that is being purchased and the legal records of the current owner of the property. During the title search process an evaluation is being made to ensure there are no outstanding liens or property taxes due on the property and that the property owner is the legal owner of the property and there are no encumbrances on the property that buyer does not know about.
During the title search process, records of deeds for the house, mortgages, liens and property taxes will be reviewed. The goal is to ensure that the seller is in fact the legal owner of the home but also to ensure that there are no outstanding liens or issues on the home that would prevent the seller from legally transferring the home to the buyer.
A title search could reveal, for example, that there are unpaid property taxes on the property or that there is a conflict about the true boundaries of the property. If there are any issues that come up during the title search, it is then important to determine how they will be remedy and who will pay for the cost of remedying them. The mortgage approval process can also be dependent on the resolution of title concerns and that they can be remedied.
A real estate legal professional can help guide buyers, and sellers, through the title search process to help ensure the property has what is referred to as a clear title so the real estate transaction can proceed. For that reason, it is essential to understand the title search process during the purchase and sale of a property.