real estate title search

A clear property title is your golden ticket in the real estate world. It guarantees that the property you want is free from legal claims or complications. If there are issues with a title, that could cause problems with your ownership rights. 

A property title search can provide peace of mind during this time. Here is how title searches and insurance can shape your real estate transaction.

What Is a Title Search? 

A title search scours through public records to trace a property’s legal ownership history. During this process, someone will look through deeds, mortgages, court records, and other documents. Any inconsistencies could cast a shadow over the property’s title. Here are a few reasons why title searches are an important part of any real estate deal:

Discovering Ownership Issues

The main goal of a title search is to unearth any potential ownership issues. Outstanding liens, judgments, or claims against the property can all be a major problem for potential new owners. Spotting these issues before closing can protect the buyer from unexpected legal issues.

Boosting Marketability

A clear title enhances a property’s marketability. This means that it can be sold or transferred without issues. A marketable title is a win-win for both buyers and sellers. Plus, it paves the way for a seamless transaction.

Preventing Legal Disputes

A title search can bring to light disputes or legal claims tied to the property. This information allows parties to iron out these disputes before finalizing the deal. Once again, that can reduce the risk of future litigation.

Securing Financing

Usually, lenders insist on a clear title before greenlighting a mortgage. A title search helps confirm that the lender’s investment is protected. Along with that, it proves that the borrower has the legal authority to use the property as collateral.

What Are Some Common Property Title Issues?

Unfortunately, some title issues can surface during a search. They include:

  • Liens from unsettled debts or taxes 
  • Forgery involving counterfeited property deeds or documents
  • Missing heirs who were absent or did not know about the property
  • Administrative errors or inaccuracies in public records 
  • Disputes over property boundaries or rights of way. 

What About Title Insurance?

While a title search is a vital step in verifying a property’s title status, it isn’t infallible. Hidden issues may slip through unnoticed. For that reason, you need title insurance. This policy protects the buyer against unforeseen title disputes. 

Title insurance offers protection against those problems that might have slipped past during the title search. It acts as a safety net against financial loss. 

If a title issue is uncovered post-purchase, the title insurance policy covers the legal fees and expenses needed to resolve it.

Having title insurance gives both buyers and lenders peace of mind. There is some financial safety net even if a title issue surfaces years after purchase.

Lenders often mandate title insurance as a prerequisite for approving a mortgage. This requirement protects their investment and confirms that the borrower has a clear title.

Always Use a Property Title Search for Your Real Estate Deals

A clear title can make way for a seamless transaction. Plus, it also protects your investment. Before you take your next step in your real estate adventure, make sure that you have a property title search completed on your potential purchase. 

If you want to learn more about commercial and residential real estate transactions, reach out to the team at Bielski Chapman, LTD. We can assist clients in Illinois and New York. To schedule a free 15-minute consultation, please contact our office at (312) 583-9430.