Purchasing a home is an exciting event, and once you’ve made the commitment, you undoubtedly want to take possession as quickly as possible. After the financial arrangements have been made, there is still one important detail that needs to be taken care of the title search.
What is a Title Search?
In the simplest terms, a title is the bundle of rights that goes with any real property. A title search is the process in which public record is searched to determine what those rights are and who they belong to. In short, it is a means of ensuring that the person who is selling the property has the legal right to do so and that the buyer will obtain all the rights to the property, or the title, that he or she is paying for.
In many instances, a title company, such as Shore Title, handles the title search. When title insurance is involved, the title company will determine whether the title can be insured as part of the search process. Once the search has been completed, the title policy will be issued to cover the rights to the property.
There are several steps involved in the title search process, including:
- Chain of Title
- Tax Search
- Report on Possession
- Judgement and Name Search
During the first step, the party performing the title search will check on the history of ownership on the property in question. The title search also involves checking on the current status of general real estate taxes against the property, and an inspector will be sent to the property to verify lot size and other details.
One of the most important components of the title search is the judgement and name search during which the title company will search for any unsatisfied judgements against the seller or previous owners. Once all of the searches have been completed, the title company will issue a commitment to insure which states the conditions under which it will provide coverage for the policy.
The title search is an extremely important part of buying a home or other real property. To learn more, contact us today.