The property typically is a big investment, and new property owners want to protect the money you invested in your property. One of the fundamental things that owners want to protect their rights to their property. Accordingly, it is important to do a title search on the property and buying insurance that title if something is lost during the search.
The Real Estate Contract
The Offer to Purchase is the real estate sales contract and is one of the areas where your attorney should help. Like in the most transaction, it is one of the most important documents in the sale. This is not the type of agreement where you can sign without reading. You have to carefully read the terms of the sale such as the price, payment terms, description and condition of the property you will purchase.
The title search, if done correctly, will provide a chain of title to the property. The search will show any restrictions on it, such as easements, and identify any relevant withholding right on the property. The title search is held in public records within the premises the city, town or county in which such property records are kept.
Anyone can go to the office where the property records are preserved and search. However, many people choose to hire a company or a lawyer to do on their behalf. It is important that the title search is complete and disclose all charges, liens and property owners. It will let the buyer know if he is buying a property that can be legally sold. The buyer will also be warned if there are any easements or restrictions to which he will be subject or be liable when he becomes the owner of the property.
For these reasons, prospective property buyers should carry out a full title search. Limited title searches can be done if the property owner is not making changes, such as a refinancing of the house.
Although a full search will reveal potential problems and give the buyer the opportunity to rectify it is always possible that the person searching skip something. Since the government only provides a method to verify the owners of the properties and easements and verify these aspects, it is important to protect your investment with the help of an attorney title insurance.
Title insurance prevents the property owners incur financial losses because of a problem in the title. The title insurance companies require policyholders search obtaining title insurance. Most banks require mortgage applicants obtain title insurance before the issuance of the mortgage so that they can ensure that their interests in the property will be protected if a lien or servitude came to light in the future. The title insurance policies can be issued as an owner’s policy if purchased by the homeowner or lender policy is purchased if purchased through a mortgage lender. Typically, the cost of title insurance is a one-time fee, and insurance remains in force as long as the same owner retains ownership. A subsequent owner needs to purchase their title insurance because it is non-transferable.
Most jurisdictions in the United States retains through complicated systems of public land records. For assurance, home buyers should perform title searches or hire someone to do it for them, and buy insurance title to ensure that the purchase of the property is protected.
Talk today with a qualified lawyer in real estate law
This article aims to be useful and informative. But the legal issues can become complicated and stressful. A qualified real estate law attorney can explain the law, meet your particular legal needs, and represent you in court. Get in touch with a qualified real estate law attorney near you to discuss your specific legal situation.