Buying a piece of real estate is one of the most significant, if not the most significant purchase you’ll ever make. Thus, you need to carry out due diligence before committing to a deal. Part of this should include a title search. Essentially, the title of the property establishes the ownership rights to it.
Outlined below are two important things that a title search can do for you:
1. Finding the true owner
You’ve spoken with the seller and their real estate agent and everything seems above board. Nonetheless, in large transactions, you need to be totally sure that everything is as it seems. It is not unheard of for property to be sold by people who have no ownership rights to it. In such instances, the new buyer may lose their money as well as their rights to the property. This commonly happens when an unknown heir comes forward and stakes a valid claim to the building.
2. Uncovering liens
For some loans, particularly mortgages, the house is put up as collateral in the event of non-payment. If someone has not kept up with payments, then a lien may be placed on the property. This is something that you need to know about before buying, and a title search can provide you with this information.
Buying a new home can be very exciting, but it’s crucial not to get lost in the moment. Always make sure that you have carried out your research first. Having legal guidance behind you from the very beginning will help ensure that you take the right steps.
