What is a Title Search?

A title search refers to an inspection of public documents for knowing and assessing the legitimate ownership of the property, as well as the claims associated with it.

How does a Title Search Work?

A title firm conducts a title search for a future buyer of the property. The lending party or some other institution can commence the process of a title search in order to confirm the property's ownership and understand the extent of claims that can be present against the property. The lender follows this process prior to the approval of loan or any other credit that considers the same property as collateral security. The title company or attorney perform their research with the help of public data and legitimate information or documents in order to find out the vested owner, the lien on the property, mortgages on the property, and the outstanding property tax. Even though a future buyer can perform a title search on his or her own, but it is not a sound decision to make. It is so because of the complexity of the process, as well as the confusion regarding too many lawful documents. A person who is new to title search or has little knowledge about it can neglect some crucial aspects of the process.

Issues Discovered in a Title Search

Prior to finalizing the home buying decision, the title company or attorney will conduct research on public records on the ownership of the property. After the search gets completed, the person will get an initial title report. In case of any defaults or issues in the title, the person can inform the seller about them. Based on how serious the issue is, the person can choose if he or she wants to buy the property or not. It will be feasible to involve the real estate agent or attorney in discussing about these matters. Issues identified through a title search can vary from small to major. While some issues are easy to resolve, there are others that can badly affect your loan policy. There can be chances when an expert misses out on some crucial information at the time of conducting title search. Sometimes, it can be an issue related to the paperwork as well. Mistakes are inevitable, but they can prove to be expensive if they are identified later after you have bought the property. In order to avoid such risks, home buyers go for title insurance in order to save themselves as well as the lending party from any big monetary losses, in case there is some issue with the title at the time or after the property is sold.

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