Are you thinking of buying a property? Or maybe you are investing in one? Well, then, you must know that real estate transactions are not easy or safe. There is always a risk of fraud, and this is a significant concern for sellers, financial institutions, and sellers. So, how do you save yourself from this? Well, a great tool is a land title search. It is an imperative process to ensure the property translation is legitimate, and nothing can overshadow it. Let’s learn more about it.
Land Title Search: An Overview
A land title search includes examining public records to verify a property’s legal ownership. With a title search, you learn about the title of the property, like the past ownership, encumbrances, and more. You also come to know about any legal issues that can affect the property. The purpose of this search is to make sure that the seller can properly give the buyer title of the property without interference from third parties claiming ownership first.
What aspects to know about title search?
Verification of Ownership
Know that the land title search’s main goal is to verify the current owner’s right to sell their property. It includes tracing the title back through many historical records and ensuring each transfer of ownership is legal. If there is a gap or inconsistencies, it will indicate potential unresolved legal issues.
Identification of encumbrance and lien
With title searches, you also reveal if there are any issues like tax liens, mortgages, or judgments affecting the property. Liens will represent claims against properties for unpaid debts complicating or obstructing a property transfer if it does not get resolved. So, identify these issues upfront with a title search, protecting the buyers from any obligations and debts they were not aware of.
Uncovering any disputes
The search can reveal any legal disputes or claims related to the property, including boundary disputes, easements, or rights of way. Such issues can affect the property’s value or usability and may need to be resolved before the sale can proceed. Identifying these disputes early helps prevent future legal complications for the new owner.
Detection of any fraud
A great benefit of land title search is that it protects you against property fraud as it uncovers fraudulent transactions. A fraud can sell property they do not have ownership of or even create false documents transferring the property illegally. Thus, a title search ensures there are no fraudulent entries in the record, which alerts the buyers about any possible scams happening.
What steps to follow?
Request the documents
The first step is requesting the document from relevant offices like the land registry or recorder’s office. This includes getting copies of mortgages, deeds, and other relevant documents.
Review the documents
The next step is reviewing the documents by attorneys and examiners for accuracy and other issues. They will verify the legitimacy of all the past transactions, ensuring there are no outstanding issues or claims.
Identify the issues
If there are any issues during the title search, you should document them and address them. For this, you might have to clear outstanding liens, negotiate with parties, and more.
Issue a title report
After you complete the search, prepare a title report and summarize your findings by highlighting any issues that you need to address. To make a buyer and lender’s decision-making process, you need this report.
Best Practices for Protection
Work with a professional
Always hire a professional title examiner or expert attorney, as they can conduct an accurate title search. As they have expertise, they can navigate all the legal drama without any issue.
Review your title report
Another best practice to follow is to review the title report properly to find out any issue or seek clarifications on any unfamiliar issues or terms. When you understand the issues, it ensures you properly address the issues before buying it.
Go for title insurance
Title insurance is necessary for offering protection against any issues that you might not have seen coming. It is a good idea to get insurance.
Conclusion
To conclude, land title search is critical in protecting people against property fraud through verifying ownership, identifying encumbrances, and more. With a title search, you can also uncover legal disputes and any other scams or frauds. With a comprehensive search for titles, you can obtain title insurance, which reduces fraud risk for all parties involved. Lastly, remember to always combine land title search with insurance and advice for better safety.
Keep an eye for more latest news & updates on Essential Tribune!
