All transactions involving the sale or purchase of property have huge financial implications. Regardless of which side of the transaction you’re on, missing any important detail could turn the process into a nightmare. Can you imagine finding out that there was an problem at the end of the process? You may not be able to purchase or sell the property when you’re ready to close the deal.
To avoid this worrisome scenario, every issue about the title needs to be clear. Let’s take a closer look at what that means. We’ll start with: Where do you draw the line between titles and deeds?
Property deed vs. title: you hear the terms thrown around interchangeably all the time. In truth they are tied at the hip but not one and the same. When you sell your house, here’s how you should think of the two:
Title refers to your legal ownership of a home—it gives you the right to live there and sleep there and use it as you wish. “Title,” though it sounds like a document you’d find in a three-ring binder somewhere, is a concept, not a piece of paper. Read more at HomeLight…
You’d be right to say that the title is intangible but the deed is tangible. While the title refers to your rights to the property, the deed is the written evidence of these rights.
With that in mind, it only makes sense to find out if the property has shared rights. Or if other parties can legally claim it. You can do this through a title search.
What Is a Title Search?
A title search is an examination of public records to determine and confirm a property’s legal ownership, and find out what claims or liens are on the property. A clean title is required for any real estate transaction to go through properly.
How Title Searches Work
A title search is usually performed by a title company or an attorney, often on behalf of a prospective buyer who may be interested in making an offer on the property. The process may also be initiated by a lender or other entity that wants to verify ownership of the property, and determine what claims or judgments against the property may exist before approving a loan or other credit that uses that property as collateral. Read more at Investopedia…
As a buyer seeking to secure property, this is one crucial step you cannot afford to skip. Though a title search may have financial implications, it is a worthwhile process.
In some circumstances, extra caution is necessary when it comes to titles. Through title insurance, you get to protect yourself from legal claims on the property as you acquire it.
Most people are familiar with other types of insurance that cover events that have not yet happened — automobile liability insurance, medical insurance, and life insurance are examples of such policies. Usually, these policies exclude events that occur before the date the policy is issued. In other words, you cannot get life insurance on someone who has already died, and you will not find an insurance company willing to give you insurance coverage for a car accident that has already occurred.
Title insurance, on the other hand, covers events relating to the title that have already happened. It does not cover anything that happens to the title after the date of issuance. So, for instance, if you have liens filed against the property for taxes that you didn’t get around to paying, your title insurance policy is not going to help you. But, if the lien is for taxes not paid by someone who owned the house 80 years ago, then you may have coverage under your title policy. Read more at FindLaw…
Protect yourself from unnecessary legal complications and liabilities by hiring an experienced real estate attorney to handle your transaction. In the Charlotte metro region, get in touch with Meek Law Firm for expert assistance. Contact us by phone at (704) 848-6335 or use the contact form on our website. We will ensure a stress-free transaction as you acquire or sell your property.