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Why Do Buyers Need a Title Search Before Buying a Property?
Date : 2022-01-28
A title search is\r\na foremost and mandatory process before buying a property. Let\'s see why?
For everyone\r\n\"Happiness is buying your first dream home\" Considering it is one of\r\nthe more expensive purchases in one\'s life, to avoid any future disaster it is\r\nnecessary to check all legal documents of the property.
What Is a Title\r\nSearch?
When you’re buying\r\na home from a seller, you’d likely presume that the seller is titled to sell\r\nthe home in question. However, that assumption can lead to tragic consequences\r\nif someone else with a declaration or lien on the property shows up on the\r\ndoorstep.
A property title\r\nsearch examines public records on the property to verify the property’s\r\nrightful legal proprietor. The title search services should also expose if there are any\r\nclaims or liens on the property that could affect your purchase.
Why Do I Need a Title\r\nSearch?
Finding out who\r\nowns the house you want to purchase is only the first step. First, the current\r\nowner might not even be conscious of an old claim against the property’s title.\r\nSecond, the debts of any of the earlier owners can come back to haunt you\r\nbecause they adhere to the property.
Things like unpaid\r\nproperty taxes, homeowner’s organization fees, and bills for home enhancements\r\nmight become your obligation if you were to skip a title search, or the title\r\nsearch failed to find it. That’s why lenders need both title searches and title\r\ninsurance as part of the mortgage underwriting process.
Let\'s go through\r\nthe ten most common problems here which are only found when you do a proper\r\n\"Title Search\"
Problems with the boundary lines: This is the most common problem faced; there might be a chance\r\ndetails of the boundary lines are mistakenly mentioned in the necessary\r\ndocuments but when you verify the documents from the public records- there you\r\nfound the real one because of this current owner has to face a problem with\r\ntheir neighbours.
Liens or debts on the property: If the seller is not financially stable or he doesn\'t have all\r\ntheir financial records in good standing – there may be a chance still\r\nsignificant liens or a debt still existing on the property which means the new\r\nowner of the property is responsible for clearing the debt.
Bankruptcies: This is an\r\nawkward situation that could be trouble for a new owner. If the seller declared\r\nbankruptcy, Judgments on the bankruptcy even extend to a new buyer. In this situation,\r\nif the buyer is not cautious then might end up paying the entire amount\r\njudgment imposed against the previous seller.
Forged documents:\r\nUnluckily, we aren\'t living in a totally honest world. With all the documents\r\ninvolved in homeownership over the years, there is always the chance that\r\nforged or fabricated documents that affect property ownership are filed within\r\npublic records. One must falsely replicate someone else\'s signature or piece of\r\nthe paper key to the entire ownership process.
An uncovered will:\r\nSometimes it is difficult to identify a choice, decisions, and intentions that\r\nare made on the property by the seller. There is always a chance that the\r\nseller might write \"WILL \"on someone if they don\'t have legal hire or\r\nif the owner is deceased there might be a chance the WILL can arise as a\r\nproblem after a long year back.
Missing heirs: When the\r\nowner has died, the ownership of the property may fall to their heirs or that\r\nsomeone mentioned in the WLL. However, those heirs might be missing at the time\r\nof purchase. This scenario may occur after some time you have purchased a\r\nproperty – Could affect your rights to the property.
Divorce edicts:\r\nUnsuccessful marriage can have terrific upshots on the financial stability of\r\nthe household. Yes, there might be a chance that the owner might lose part (or\r\neven all) of the property in a divorce settlement which means the other divorce\r\nparty may have to involve in the process. If the party is not involved or does\r\nnot give their permission for a sale, then the entire process may come to an\r\nend. This especially important thing that only is checked when you perform a prior\r\nproperty title search.
The previous owner failed to pay state or local taxes: if a property owner fails to pay taxes on the property, it may\r\nresult in a tax lien foreclosure. Therefore, the property may be sold by the\r\nstate to trust or investor through a public auction.
Other owners: This might be a very rare scenario however it\r\nmay happen that the property should have another list of owners due to some\r\nother debts or liens of the current owner. In this case, only a property tile\r\nsearch can reveal and able identify the real problem.
Mistakes in public records: As a buyer, we all will believe in public records unfortunately\r\nsometimes \"Humans may make errors\" – details mentioned in the real\r\ndocument mismatches with public records that are printed on time of purchase.
Play it safe!!!!\r\nDon\'t get blindsided by unexpected problems with your new home! SKPTS Title Services\r\nCompany will take care of all the document-related issues.