Must Know Home Facts For Title Search

Friday, January 31, 2014


When buying a home, many people consider a house inspection to be a necessity, and so too should you think of a title search that will evidence the history of a piece of property.

The growing fact is that homeowners and homebuyers need to know that their most valuable asset is theirs and is protected, which is why title insurance and title search companies exist. Good companies, like Title Guarantee Inc. will even credit the title search back to the homebuyer when they close on their new home.

But what is it exactly?

A title search, otherwise known as a property title search, is the procedure of retrieving certain documents evidencing events in the history of a piece of property. These documents are used to determine the relevant interests and specific regulations involving that property.

In the case of a potential purchase, a title search is performed primarily to answer three specific questions involving that specific property that is on the market:

1. Does the seller have a sellable and legitimate interest in the property?

2. What kinds of restrictions or allowances pertain to the use of the land in this specific county (i.e. these would include easements, covenants and other services)?

3. Are there any liens against the property, which need to be paid off at closing (i.e. mortgages, open taxes, mechanic liens, and other assessments against that property)?

A title search is also performed when an owner wishes to mortgage his property and the bank requires the owner to insure the transaction, which is very common in today’s world and market.

In the United States, the buyer of a property will usually purchase a title insurance policy, specifically an owner’s title insurance policy, which protects the buyer from any title problems that may arise after sale, such as a lien or liens that were missed. The title insurance company issues a report and an insurance policy in support of its findings. However, title searches are most often carried out before contracting is completed between parties, though sometimes during the escrow phase of a closing.

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