Real estate investments are often the most important financial choices people ever make. Whether, you’re getting a house, an apartment, or even just land, you must ensure your money is safe. Searching for the home’s title is an essential first step, in protecting your property. This step is simple to skip, but it can save you a lot of problems in the long run, both legally and financially.
How A Title Search Works
A full house title search looks into some important areas, including the ones below:
- The search goes through the property’s history, to ensure that all previous ownership changes were legal.
- There may be liens on the property that the new owner needs to pay off. Some examples are mortgages, taxes, and builder liens.
- The search looks for any restrictions, utility easements, rights of way, or easements that might make it hard to use the land.
- Checking the title of your home is very important to protect your investment. Here are some things you should know.
Why It’s Important To Do A Home Title Search
Protecting Yourself From Possible Legal Disputes
A title check is important to make sure there are no legal problems. If someone else claims the land as theirs after you buy it, you may have to spend much money going to court. Some things that could lead to these kinds of disputes are a hidden heir, a fake will, or a mistake in the public records. One way to ensure, these types of legal problems don’t happen, is to look at the house’s title before you sign the papers to buy it.
Making Sure Of Clear Ownership
There is no way for the seller to truly own the land if they say they do not have the title. Therefore, the title is free and clear, giving you peace of mind when you buy, sell, or repurchase the property. If the last owner did not pay their share, the government would put a tax lien on the land. It might be harder, to keep track of your ownership, and finances if this lien goes away without a title check.
What A Title Search Is And How It Works With Title Insurance
Do You Know What Title Insurance Is?
By buying title insurance both lenders and buyers, of real estate can protect themselves from going bankrupt if problems with the title are found after the sale. While a title search is a good way to find problems before they happen, title insurance is like a safety net that covers you financially in case a problem is missed or a new problem comes up later.
Why Both Are Important
It’s possible for a house title check to find everything, however, it might not, be accurate. The search might overlook some problems, like fake papers or heirs who are hiding. Even if a problem with the title is found after the purchase, title insurance will protect your investment and cover any unplanned costs. A title search and title insurance may be enough to protect your real estate property.
Most Common Issues That Come Up When You Search For A Title
Real Estate Taxes That Are Past Due
Unpaid property taxes often appear when you look at a building’s title. Someone may have lost their land because they couldn’t pay taxes, and the local government may have taken it back. The lien must be settled before ownership can be transferred. If it isn’t, you may have to pay it back yourself.
The Breaking-In
People cross property lines when a building on one side of the line moves into the other. It could be a fence, a house, or a road. Any encroachments found during a home title check could lead to problems with the neighbours or even court action.
Orders From The Court And Landlord Liens
There could be liens on the property if the previous owner were found guilty in court for bills that were not paid or for being in court. A full title check will show you these liens, which you should take care of, before, concluding the deal.
Finally, Do A Title Search
Before buying a house, you should do a home title check to protect your investment and ensure, you have clear ownership. This will show any possible legal or cash problems. It may seem like an extra cost, but the peace of mind and safety it provides are worth much more. You can ensure your investment is safe by looking into the property’s title in great detail.
