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
An arm’s-length transaction is a business deal, or transaction where the seller and buyer act independently of each other without influence on the other party. What sets these types ...
Incapable of performing duties because of a lack of knowledge and training. The individual may not possess the qualifications and credentials. For example, a prospective buyer of real ...
The definition of gross sales price in real estate refers to the combined cost of a property or listing before subtracting the real estate agent’s commission, sales tax and other ...
The American Society of Appraisers, also referred to as ASA, is the largest voluntary membership, a multi-discipline trade association that stands for and promotes its appraiser members. ...
Loan in which two or more lenders participate in the total financing of a single mortgage. The lenders in a piggyback loan do not necessarily have equal shares. ...
An agreement specified in the lease providing the tenant the option to renew the lease for a given time period upon the expiration of the initial lease. Most lease options include the ...
There are two definitions of annexation in real estate. The first definition of annexation in real estate deals with the expansion of cities and the accompanying zoning laws. When a city ...
The willingness of a lender to give a mortgage to a mortgagor. A mortgage commitment will give a time period the mortgage will be given and an indication of the interest rate to be charged ...
Thin layer or slate of baked clay, linoleum, or some other material that is used for covering floors, roofs, or as an ornament in a building. ...
Have a question or comment?
We're here to help.