When you take title to a property, you become its legal owner. Those who held title before you will be part of the record for the property, which allows you to reach out to previous owners to find out about the history of the building or land if necessary.
Title records also help businesses and individuals by giving them a way to seek repayment. The title for a property plays a significant role in any real estate transaction. Learning the purpose of a title search will help you better understand why you have to pay for one.
A clear title is crucial for any real estate transaction
When you decide to buy a piece of real estate, what you really purchase is not just the physical property but the title or legal ownership of the property. The previous owner will pass the title to you using a legal document called a deed.
A title search is the only thing standing between you and someone with a claim to the property that you’re spending tens if not hundreds of thousands of dollars to purchase. During a title search, experienced professionals review the records for the property to look for blemishes. Anything from unpaid liens to easements could cause a hiccup in the title search process.
If there appears to be a blemish, the title then goes through the curative process. Curative title works, like the execution of a deed or quiet title proceedings in court, to address blemishes and make the property’s title eligible for title insurance. Once all issues found during the title search are dealt with, you can proceed with the purchase of the property without worrying about losing it later.
Buyers benefit from careful title work
Some of the biggest title companies could rush both the search and curative processes. That might mean that they fail to notice blemishes or issues that could eventually impact the buyer.
Having an in-depth title search carefully performed and purchasing title insurance for yourself as a buyer are two of the most important things you can do to protect this massive investment you plan to make.