A title search is an important part of preparing a property for closing. In many transactions, the process moves forward without major concerns. In others, the search may uncover an issue that requires attention.
Here are a few examples of title problems that can potentially affect a real estate transaction.
Outstanding Liens
A lien may be attached to a property because of an unpaid debt or obligation. Depending on the circumstances, the lien may need to be satisfied or otherwise addressed before ownership can be transferred.
Unpaid Property Taxes
Past-due property taxes can create a title issue that needs to be resolved as part of the transaction.
Errors in Public Records
Even small mistakes in previously recorded documents can create questions. Names may be incorrect, legal descriptions may contain errors, or documents may not have been recorded properly.
Ownership Questions
Sometimes a title search reveals questions involving previous owners, estates, heirs, or how ownership was transferred in the past.
These situations may require additional documentation before the transaction can proceed.
Easements and Other Recorded Matters
Certain recorded rights or restrictions can affect how a property is owned or used. Identifying these matters is an important part of understanding the title.
Finding Issues Before Closing
Discovering a title problem does not automatically mean a transaction will fall through. Many issues can be addressed once they are identified.
That is one reason the title search is such an important part of the closing process.
If you are buying, selling, or refinancing and have questions about a property’s title, contact Crest Title Company. Our team can help you understand the title process and work toward a smooth closing.