Property titles are legal documents that show the specifics of the property you are purchasing and who owns it. Most often, it is presented in the form of a deed when buying your property. One of the major steps you must take when buying a home is to ensure you have completed the title search prior to closing.
A title search is performed to ensure that the title is clear and that there are no unwanted surprises in the future. While many home purchases are completed without any hassle, some have issues with the title.
In this article, we are going to help you understand everything about property titles and how you can work to get one with ease to avoid the problem.
1) Purchasing Title Insurance
If you are a first-time buyer, one thing you need to buy first is the title insurance. For real estate, there are two kinds of insurance you can work with. The first is the owner’s title and the lender’s title. The owner’s title insurance protects the buyer while the lender’s title insurance protects the lender.
An owner’s policy provides coverage equal to the amount of money you are putting in for the property. It protects the owner if a problem is discovered after the search is completed. Although you have little involvement with the actual title search, it is important to have title insurance. However, understanding the best way to go about it can give you peace of mind through the home-buying experience.
2) What Do You Do When You Lose Your Title?
Loss of your title is no reason to panic. The only thing you are required to do is visit the office of the clerk close to your property and request a new copy. If the property in question has a mortgage attached to it, your mortgage banker should also have a copy.
If you are a first-time buyer, the process of going through a title search can be confusing. When little title issues arise, it can cause anxiety and stress. You should stay calm. Although title issues may delay closing in some cases, they typically don’t cause lasting effects.
3) Resolving Issues With The Title
If you find out that the person you intend to buy your house from has ownership with another person, you must ensure that any or all owners must sign the closing documents before the sale can be completed.
Before a clear title is received, delinquent taxes or outstanding judgments must be paid at closing. The seller has the responsibility for resolving any issues with the title.
4) What to Do with A Title
5) Dealing With Prior Title Claims
During the sales process, a title investigator looks for any claims to the title that may affect your purchase. The search will include public records and other documents that have been there for years.
The title company has disclosed that over 30% of all title searches uncover some kind of problems such as forgery, undisclosed owners, the previous owner failed to pay local or state taxes and omission in deeds.