Getting a Title Search is Critical When Buying Real Estate

When you are purchasing a home, condo, or other property it is crucial to have a title search. A title search on a property should be conducted whether you are paying cash or getting a loan from a lending institution.

You may be wondering what exactly is a title search and how does it work? Maximum Real Estate Exposure has one of the best resources out there explaining everything you need to know. Make sure you click the resource to learn as much as you can about this critical home buying step.

One of the most significant purposes of a title search is to make sure that the seller is the actual owner of the property. You might be thinking how could a seller not be an owner? Fraud is rampant in most walks of life and real estate is no different. There have been many occasions where fraud has occurred with the transfer of real estate.

By conducting a property title search you can ensure that the person purporting to be the owner actually is one. The second very important reason for a title search is to make certain there are no encumbrances against property or there are title defects.

One of the more common encumbrances in real estate is a lien. It is possible that the owner of the property has had work performed on the property that was not paid for. When this happens the contractor can go to the registry of deeds and file a contractors lien against the house.

In order for the property to be transferred the lien must be paid off. Another type of encumbrance could be the a neighbor building over a lot line. By having a title search a determination can be made of exactly what land is part of the property.

By making these checks with a title search, you will be able to determine if there is a "clean title". With a clean title, it is then possible to issues title insurance. Both the lender and the buyer can have a title insurance policy. A lender's title insurance will be mandatory but an owner's insurance policy is option.

Title insurance options are addressed at length in the article resource above. When buying a home for the first time it is vital to have a strong grasp of a title search. A title search can provide assurances that you have not made a significant purchase mistake.