A Title search assures that the property you are purchasing has a clear title. It consists of a thorough search of all public records concerning the real estate you are purchasing. The search involves reviewing past deeds, wills and trusts, and public liens that may have been placed against the property in the past.
The title company verifies that all previous mortgages, liens, and judgments against the property have been satisfied. The title company must also ensure that the seller is the owner and has a right to sell it.
If there are any defects in the title, the title company will advise the buyer concerning any steps that must be taken by the seller to clear the title. Until the titled is cleared of any claims, the property is unmarketable.
The title search process takes place while the property is under contract and any concerns that arise during the process can be addressed or the buyer may choose to withdraw from the transaction.
Benefits of a Title Examination
It ensures that there is a clear and undisputed chain of title leading up to the seller. The buyer must have the assurance that the title being transferred is legitimate.
A real estate transaction is generally long and stressful, and it involves many procedural steps and compliance formalities. The closing is when you sign the final papers that legally make you the owner of the house or property. However, between initiation and closing, there are several things that you have to be mindful of. Here are a few of the steps that must be taken before any closing process:
The moment your offer is accepted and a down payment is made, an unbiased third party holds the funds in an escrow account on behalf of both the seller and buyer. Once the terms and conditions of the agreement are fulfilled the funds are released.
Title search and title insurance
Title search is conducted, and title insurance is obtained, to prevent the property from any future claim. The title search examines the public records to find any claim on the property and to determine legal ownership. If any issue is found it must be resolved prior to the sale. Title insurance protects the buyer from any financial loss occurring after the sale due to encumbrances, liens or defects in title ownership not previously discovered during the title search.
Accepting documents and signing them
Once the title agent and real estate attorney have verified all the legal documents related to the property, the documents are ready for signature. The closing date is set and the property changes hands. It is highly recommended you hire a real estate attorney Boca Raton, to ensure that you have a smooth closing process. An attorney can help you throughout and will ensure that you’ll have a secure transaction.
Investing in commercial estate is more profitable than investing in residential property. This is due to the higher rental yield as compared to residential properties. Commercial property generally has little turnover and vacancy periods are shorter. All this makes an investment in commercial property more lucrative than a residential property.
If you are considering buying a commercial property, then it is imperative that you hire a real estate attorney Boca Raton, as commercial transactions have legal and compliance issues that must be taken into consideration. You will need an attorney to navigate those.
Here are some of the things you should consider before investing in a commercial property:
- Location: Location is the cornerstone of all commercial investing. Any commercial property in a prime location is the first pick for an office or for retail use. Local zoning ordinances will govern the type of business that can take place at that location.
- Neighborhood: Check the neighborhood’s overall reputation including crime rates and look for any competing businesses. People are more likely to visit safe areas with good social infrastructure, such as localities with restaurants or retail stores.
- Facilities: It is essential to scout the facilities and essential amenities available in the area where you are planning to buy commercial property. Is it close to your client base or vendors?
- Seek advice: Hiring a real estate attorney Boca Raton is a smart move. An attorney can help you understand and comply with zoning laws, submission compliances, and other commercial expenses such as building insurance and property taxes.
Buying real estate title insurance is not necessary but it is highly recommended. Title insurance is a type of indemnity insurance that protects the bearer from financial losses that arise from claims against the property or challenges to ownership. Here are important reasons why you should get the insurance:
To protect your investment
An investment in any property will mean a substantial outlay of capitol. When a rival claim to the property emerges, and is found to be valid, you may lose your investment. Real estate title insurance protects against financial loss.
To ensure a title search
All transactions involving property are noted in public records. Before an insurance company issues a title insurance policy, it conducts a thorough title search using these public records. While it is possible for you to do your own title search, a title insurance company has the resources and the professionals to carry out a more in-depth review. When you buy title insurance, you are protected from any errors made in the search.
To get a mortgage
Having title insurance is usually a requirement when securing a mortgage. This ensures the mortgage company is protected because a threat to the ownership also jeopardizes their stake in the property.
To show there are no claims
Real estate title insurance can also be purchased by the owner of the property to show there are no liens against the property and the ownership is clear.