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.