You’ve been searching for the perfect home for some time now. Fortunately, you have found your dream home, and in the ideal neighborhood. Before signing the sale agreement, however, it is important that you take certain preliminary steps. One of these involves ensuring that the home in question is clean. And this is where a title search comes in.
At the very basic, a property title search is the process of accessing the history of the real estate in question. The primary purpose is to discover relevant interests in the property as well as any regulations pertaining to it. Here are some of the things you need to look out for during a property title search.
Boundary disputes are not uncommon in real estate. Those seemingly insignificant boundary disputes can easily escalate into full-blown conflicts down the road. Whether the issue relates to a boundary line or differing surveys, do not take any boundary issue lightly. You need to know exactly what you are buying.
Any debts or liens on the property
This is probably one of the most common problems that pop up during title searches. If the seller used the home as collateral for credit, this will show up during the title search. Likewise, if the seller defaults on obligations like child support, then a lien might be placed on the property. And this too will show up during a title search. Once you buy a property that has been used as collateral or has a lien on it, you may legally be responsible for settling all the amounts the seller would be responsible for.
This might come as a surprise to both parties. If a property had multiple owners, then all the owners must be present and approve of the sale. If the other owners are not present or do not consent to the sale, you might find yourself in an awkward situation down the road.
The road to homeownership can be a long and winding one. Knowing how to navigate the process of home ownership can save you from costly mistakes in the long run.