If you’re like most real estate investors, you already know that a title search is an important part of any property transaction – but what, exactly, should you be concerned about in a title search?
What Should You Worry About in a Title Search?
When you work with a title insurance agency, they’ll typically conduct the entire title search for you.
Title problems can affect your ownership of the property. If someone has a claim against a property, even if you’ve already purchased it and didn’t know anyone else had a claim, they could file paperwork that takes away your right to own it.
It’s important that you know a title search can turn up a number of different issues, such as:
Errors in public records. Clerical errors can affect the deed to your property, and you could be responsible for paying to correct them.
Unknown liens. Despite the fact that a lender could put a lien on a property prior to your ownership – and despite the fact that the debt has nothing to do with you – you could end up being responsible for clearing up the debt when the property is in your name.
Missing heirs. When heirs can’t be found to claim a property, or when heirs disagree and don’t resolve their disagreements until after you’ve bought a property, you could be forced to forfeit ownership.
In some cases, forged documents could affect your ownership of the property; when the rightful owner discovers what’s been done, he or she may contest your rights to the property… even if it’s paid for.
Survey or boundary issues. Not all surveys are perfect, and if there are two that show differing results, a neighbor or other nearby owner may make a claim […]