Buying or selling a home requires an in depth research about the property background. Apart from this, even the real estate business revolves around building contacts and knowing the market well. If you are in this trade, or you are a homeowner or a buyer, then you must always be on the lookout for homeowners and sellers. On the other hand, if you have an idea about the property owner search, then you can take the steps in the correct direction towards buying or selling your house.
Even if you are not into this profession, as a homeowner or seller, you must know about the term property title so that you can be aware of the formalities.
Buying and selling of property involve a lot of legalities that one must be aware of. Knowing about the property title is the important thing to start with. According to the statistics provided by the National Association of Realtors, up to 9% of the business closing delays can be caused due to problems related to the property title.
This article will give you a detailed insight into the concepts of property title and how this information will be of value to you, as a real estate agent.
What is a Property Title?
In simpler terms, the property title determines who owns the home and therefore eventually has the right to sell it. Even though it is just a name, on which the house is assigned to someone, in the formalities of selling it, the person who has the house in his/her name will be the whole and sole rightful owner.
This can be crucial in the case of a family. If a couple owns a home but the property title is under the name of the wife, then legally the house would belong to her and she only will have the right to sell it.
In the US, while selling or buying a home, a reliable title search company can help you with a hassle-free process of property dealing.
About Property Title Search
After a deal to buy a house has been made, the property title search is to be done. Things such as chain of deeds, mortgage, open lines, judgements on owners(civil judgements, divorce, etc.), taxes on the property constitute a property title search. Liens are the collateral that is generally used to satisfy a debt.
A title search will basically give an idea about the local records. It also documents who else has a claim on the house besides the owner.
Along with that, it will also give the deed information. This includes things like building structures around the house, like fences, or adding rooms.
So if you will be purchasing a property that might come along with its own restrictions then you must know about the property title.
Once it is established that there are no claim issues between the buyer and the seller then it will be determined as a clean property title search.
Sources used in the Property Title Search:
The following sources are used in the property owner search:
- Federal and state tax liens
- Country land records
- Chain of Deeds
- Divorce cases
- Bankruptcy records
- Financial Judgements
- Child support cases
When can a Property Title Search be done?
During an escrow, when a homeowner wishes to buy a home, a property title is done. However, this search can also be done as a buyer.
The estimate of the Property Owner Search
When it comes down to the calculation of the cost of property title search, it varies from state to state. A basic land report can cost you up to $1,000. This includes the insurance cost too.
In a Nutshell
If you are a homebuyer or an investor, a background check on every house is a must for you. By doing a thorough property title search in the USA you can be assured that the property is legit. It will also help you determine the problems related to the title so that you can fix them ASAP. It can be deemed as an early warning for home buyers so that it can ensure a smooth deal.
So whether you are a homeowner or a seller, you should always be clear with every stepping stone that might come your way while dealing with any property.
