In the current real estate situation, mortgage lenders and property buyers need to ensure that the property in question has clear titles so that any legal issues would not pop up at a later stage. A title search service provider thus becomes essential here.
By performing a property title search, you can be assured about details such as the rights of ownership and ensuing legal battles, if any. Through analyzing the public records you will be able to get all the internal information and details as well.
Here, we will have a look at the reasons why a property title search is essential:
Raises awareness of issues related to property ownership: The problems that are connected with your home or property title could be multi-fold, ranging from errors while filing, forgotten encumbrance or continuing border wars, etc. These issues could also lead to problems for your right to hold ownership of the property. Hence, it is always better to be prepared ahead.
Helps identify the chain of title: Chain of title suggests a record of the property title transfers done, thus providing information about the list of owners. Prior to purchase ensure that your chain of title is clear and there is no issue about it. This is required, because if you need to get title insurance that can protect you from financial loss resulting from title defects that may ensue after purchase, then the record for the chain of title should be clean.
Classifies any outstanding liens: If you want to check that the person you buy the property from is not saddled with heavy debt, then you can make use of title search services. Searching through the public records will tell you details such as IRS liens, hospital liens, state tax liens, mechanic’s liens, child support liens, or abstracts of judgment. The issue with any of these liens could make the purchase process very difficult for you. So, arrange the search and be assured that the owner is totally liens free before you go about the transaction.
How Is Title Search Advantageous For A Mortgage Lender?
It tells you if the loan applicant has legal ownership of the property
It notifies you of issues related to the title so that you can make the necessary modifications
If it is a case of refinancing, you can check if any changes have been made from the time of the last mortgage
It advises you if there are any defects or flaws related to the title search, which have to be resolved
Title search service is an important aspect and a required service for all. Prior to making any property purchase, as it will ensure that there are no issues or liabilities connected with the property being acquired. Partner with Trupp Global to ensure a hassle-free experience while buying your property, contact us today for more details.