Why Do Buyers Need a Title Search Before Buying a Property?
A title search isrna foremost and mandatory process before buying a property. Let's see why?
For everyonern"Happiness is buying your first dream home" Considering it is one ofrnthe more expensive purchases in one's life, to avoid any future disaster it isrnnecessary to check all legal documents of the property.
What Is a TitlernSearch?
When you’re buyingrna home from a seller, you’d likely presume that the seller is titled to sellrnthe home in question. However, that assumption can lead to tragic consequencesrnif someone else with a declaration or lien on the property shows up on therndoorstep.
A property titlernsearch examines public records on the property to verify the property’srnrightful legal proprietor. The title search services should also expose if there are anyrnclaims or liens on the property that could affect your purchase.
Why Do I Need a TitlernSearch?
Finding out whornowns the house you want to purchase is only the first step. First, the currentrnowner might not even be conscious of an old claim against the property’s title.rnSecond, the debts of any of the earlier owners can come back to haunt yournbecause they adhere to the property.
Things like unpaidrnproperty taxes, homeowner’s organization fees, and bills for home enhancementsrnmight become your obligation if you were to skip a title search, or the titlernsearch failed to find it. That’s why lenders need both title searches and titlerninsurance as part of the mortgage underwriting process.
Let's go throughrnthe ten most common problems here which are only found when you do a properrn"Title Search"
Problems with the boundary lines: This is the most common problem faced; there might be a chancerndetails of the boundary lines are mistakenly mentioned in the necessaryrndocuments but when you verify the documents from the public records- there yournfound the real one because of this current owner has to face a problem withrntheir neighbours.
Liens or debts on the property: If the seller is not financially stable or he doesn't have allrntheir financial records in good standing – there may be a chance stillrnsignificant liens or a debt still existing on the property which means the newrnowner of the property is responsible for clearing the debt.
Bankruptcies: This is anrnawkward situation that could be trouble for a new owner. If the seller declaredrnbankruptcy, Judgments on the bankruptcy even extend to a new buyer. In this situation,rnif the buyer is not cautious then might end up paying the entire amountrnjudgment imposed against the previous seller.
Forged documents:rnUnluckily, we aren't living in a totally honest world. With all the documentsrninvolved in homeownership over the years, there is always the chance thatrnforged or fabricated documents that affect property ownership are filed withinrnpublic records. One must falsely replicate someone else's signature or piece ofrnthe paper key to the entire ownership process.
An uncovered will:rnSometimes it is difficult to identify a choice, decisions, and intentions thatrnare made on the property by the seller. There is always a chance that thernseller might write "WILL "on someone if they don't have legal hire orrnif the owner is deceased there might be a chance the WILL can arise as arnproblem after a long year back.
Missing heirs: When thernowner has died, the ownership of the property may fall to their heirs or thatrnsomeone mentioned in the WLL. However, those heirs might be missing at the timernof purchase. This scenario may occur after some time you have purchased arnproperty – Could affect your rights to the property.
Divorce edicts:rnUnsuccessful marriage can have terrific upshots on the financial stability ofrnthe household. Yes, there might be a chance that the owner might lose part (orrneven all) of the property in a divorce settlement which means the other divorcernparty may have to involve in the process. If the party is not involved or doesrnnot give their permission for a sale, then the entire process may come to anrnend. This especially important thing that only is checked when you perform a priorrnproperty title search.
The previous owner failed to pay state or local taxes: if a property owner fails to pay taxes on the property, it mayrnresult in a tax lien foreclosure. Therefore, the property may be sold by thernstate to trust or investor through a public auction.
Other owners: This might be a very rare scenario however itrnmay happen that the property should have another list of owners due to somernother debts or liens of the current owner. In this case, only a property tilernsearch can reveal and able identify the real problem.
Mistakes in public records: As a buyer, we all will believe in public records unfortunatelyrnsometimes "Humans may make errors" – details mentioned in the realrndocument mismatches with public records that are printed on time of purchase.
Play it safe!!!!rnDon't get blindsided by unexpected problems with your new home! SKPTS Title ServicesrnCompany will take care of all the document-related issues.