Who Needs A Title Search And Why?

A title search is important to:

• Ensures Clear Title: Typically a primary goal of a title search is to ensure that the seller has the legal right to transfer ownership and that the buyer will receive a clear title without any unexpected legal issues. The property title report will list any encumbrances that may prevent a sale.
• Protect Against Future Claims: By identifying any potential problems before the sale, title research helps protect the buyer from future claims against the property. This is why it is critical to chose a trusted, experienced title abstractor.
• Facilitate a Property Sale: A clear title is usually required for a sale to proceed. For the buyer to obtain financing, lenders will require assurance that the property is free from significant legal issues.
• Prove Current Ownership: When issuing funding, be it a mortgage, construction loan, or insurance policy payout, lenders will need assurances that the payee is entitled to the funding as a current owner on the property. Ownership history may also be insightful when dealing with property disputes.

In lieu of these important factors, title searches are commonly requested by banks, real estate investors, homeowners, attorneys, insurance companies and government agencies. Many of our clients are looking at properties to purchase for investment purposes. Some of them buy properties through foreclosure, or at auction and use title searches to determine the status of any liens that may exist against the property.

Many real estate buyers want to understand the ownership of a property before making an offer. Some find it helpful for negotiations to get a full financial picture of the prospective property, and seek to know beforehand of any open mortgages, or legal obstacles that may exist for the seller. Our title searches can also be customized to include comparable sales data, to see what other properties in the area have sold for.

In addition, some of our clients need a title search as part of a family event, such as divorce, estate or otherwise. Many homeowners nowadays are checking their own home title status on a regular basis to make sure there are no liens against the property.