A title search is utilized to determine if the current owner of the property being sold actually has the right to sell the property. Also, the title search reveals if there are any state restrictions on the property, if there are any liens or judgements on the property, and what the possible cost might be on the judgement/liens. Under the umbrella of a lien, it can incorporate state and federal back taxes, mortgage payments, and court judgements.
With a title search, all of the aforementioned is out in the surface for your viewing pleasure. Nothing will come as a surprise in the later stages of the closing. All of these liens don’t actually disappear if they are valid. This is where title insurance comes in handy. With title insurance, you guard yourself from scenarios in which tax auditors/collectors, and distant relatives crawl out of the woodwork to make claims on the property. We have seen instances where the buyer will pay off all of these unpaid debts, and the seller would lower the price of the property as a form of quid pro quo. Also, there are instances where the right of ownership or the seller’s right to actually sell the property is simply not allowed under various legal clauses. How do you protect yourself? Title insurance. This is one of the most important tools you have throughout this entire process. Title search and title insurance for the sale of the property is equivalent to food and water for a human to survive
Richard F. Rozhik, Esq., knows exactly what to identify during the title search process and has the right contacts within the real estate community to ensure you are paying less out of pocket during this phase of the real estate closing.