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
Unsecured long-term debt. There is no collateral or lien on the property. A debenture can only be issued by a financially sound borrower with an excellent credit rating because no ...
Surveying the land to determine its suitability for a specific purpose, such as building a high-rise apartment house. ...
Interest computations based only on the original principal. For example, the simple interest on a $100,000, 8% loan is $8,000. It is compared with compound interest which is applied to the ...
List of business property. ...
Wondering what “de facto” means? Well, because it’s a Latin word, let’s give a formal definition. De facto is Latin for indeed, in fact, in reality, actually. An ...
Court or government regulatory order to stop doing something, such as not showing minorities certain neighborhoods. ...
Literature, samples, equipment, tools, and other useful information that real estate brokers or agents can use for demonstration purposes to prospective buyers. ...
The selling of a parcel of land whereby the original owner agrees to immediately leaseback the property. The advantage of the land sale-leaseback in that the original property owner can ...
Before getting a loan to buy a property, you must know the definition of foreclosure. A foreclosure is the process of making a loan due immediately. Technically, a loan becomes due way ...
Have a question or comment?
We're here to help.