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
Are you planning on buying a house? If you are, you’re going to love the Buyer's Market definition. But if you are a home seller, you will wish that term never comes up again in your ...
Process of the borrower giving the lender security to obtain the loan. ...
Statutes stipulating that the property of deceased individuals is distributed in a way that assumes that property during marriage is jointly owned and equally shared by the spouses ...
An interim or provisional court decree, which is not final and can be reversed or amended, normally issued to direct additional proceedings prior to issuing a final decree. For example, an ...
Classification of one's ownership rights in land. One way either buy the land and own all rights to it or lease it where one's rights are described in and limited by the lease agreement. ...
Time interval between buying a real estate investment and selling it. A sound way to determine the return from a real estate investment is over its life. For example, if land was bought on ...
Expenditures incurred to initially purchase property, including incidental costs necessary to put the property into existing use and location. This cost is then depreciated over the assets ...
Also called the Rule of the Sum of the Digits. An approach that bank use to formulate a loan amortization schedule. It results in a borrower paying more interest in the beginning of a ...
Document evidencing the passage of title to a purchaser of property sold for taxes. The tax deed is issued upon foreclosure of the property lien. Typically, there is a grace time period ...
Have a question or comment?
We're here to help.