Buying a new home or business should be an exciting experience. The closing of that transaction should not diminish the magic.
The nightmare of an unforeseen claim on the title of that new house or business can be avoided by hiring a reputable Title Insurance Agency.
Examples of Title Problems
- Forged title documents
- Power of Attorney used by people who do not have legal authority
- Heirs missing or not disclosed in the title documentation
- Mistakes made in recording legal documents
Why Is a Title Search So Important?
When buying a new home, it’s easy to assume that the transaction is complete once the buyer and the seller agree on a price. However, there is still one very important hurdle to cross – the title search.
What goes into a title check? Basically, potential buyers pay a title company to research the history of their potential home and the property on which it sits. That way, there are no surprises once the buyer has signed on the dotted line.
Sun Title starts by examining public records to see who the registered owner of the property is. After all, if the seller with whom you’ve dealt isn’t the registered owner (or if he’s one of a couple of registered owners), he can’t legally sell the home to you!
From there, we’ll provide an abstract of the title, which is a brief summary of the ownership of the property. After that, Sun Title will dig up the details – by going through things like property deeds, wills, and trusts. We’ll go back several decades to make sure that there aren’t any liens on the home or business, claims of ownership by someone else, or pending litigation.
When all is said and done, a good title company will be able to provide you with a list of open liens (such as tax liens for property taxes that haven’t been paid or a contractor’s lien for upgrades that haven’t been paid), any mortgages that exist on the property, and any other owners who are listed on the property’s deed. You’ll be able to see who has bought and sold the home over the years, the details on the property taxes, and any restrictions on the property (like, for example, what kind of remodeling you can do).
What if Your Title Search Turns Up a Problem?
Don’t panic! Title issues are usually minor and easy to fix. While your closing may be delayed until they are resolved, negligible issues aren’t a reason NOT to buy the home. However, serious title issues may be another story.
Liens go with the property – not with the person who incurred them. So, let’s say the house you’re about to buy has $100,000 in tax liens. Once you buy the home or business, the local tax collector will come after YOU for the money!
Isn’t that something you’d like to know about BEFORE you sign on the dotted line?!
Basically, you can think of a title search as reassurance. After all, you’re about to make what will likely be the biggest investment of your life. You need to know exactly what you’re getting!