Once a real estate contract is signed, one of the important steps leading up to closing is the title search.
While buyers may not see this process happening, it plays an important role in confirming the property’s ownership history and identifying potential concerns before the transaction is completed.
Looking at the Property’s History
A title search involves reviewing public records connected to a property. The purpose is to determine the chain of ownership and identify claims or other matters that may affect the title.
The research may include deeds, mortgages, liens, judgments, tax records, and other recorded documents.
What Can a Title Search Find?
Several issues can potentially appear during a title search. Examples include unpaid property taxes, outstanding liens, errors in recorded documents, or questions about previous ownership.
Discovering an issue does not necessarily mean the transaction cannot close. Depending on the situation, many title concerns can be addressed before closing.
Why This Step Is Important
When you purchase real estate, you want to know that the person selling the property has the ability to transfer ownership and that known title concerns have been properly addressed.
The title search helps provide that information while also helping the title company determine what is needed before a title insurance policy can be issued.
An Important Step Toward Closing
A title search is one of many pieces that come together during a real estate transaction. Careful research and preparation can help reduce surprises and keep the closing process moving forward.
Have questions about a title search or an upcoming transaction? Contact Crest Title Company. Our team is here to help you understand the process and prepare for a successful closing.