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How a title exam can benefit you

On Behalf of | Sep 7, 2023 | Real Estate |

When purchasing a piece of real estate, one of the most important steps in the process is conducting a thorough title examination. A title imbues a property owner with certain rights, including the right to renovate or even sell the property.

Some titles have problems that buyers must address before completing the transaction, and a thorough exam can prevent many issues.

Establish clear ownership

Prospective buyers must verify the legal owner of the property prior to purchase, as doing so ensures the seller has the right to transfer ownership. Accordingly, a title exam can eliminate any future disputes or confusion regarding the true ownership of the property.

Uncover liens and encumbrances

Liens are claims against the property, typically in the form of unpaid taxes and mortgage debt. In the event a home buyer purchases a property with an existing lien, that lien becomes the new owner’s responsibility, which can result in a huge financial payout. A title examination will uncover liens and other issues, giving buyers the opportunity to address them before finalizing the purchase.

Protect your investment

Investing in real estate is a significant financial commitment, and a title examination acts as a safeguard. For instance, it can protect your investment from unforeseen issues by making sure the property’s title is clear and marketable.

Access property history

A title examination also provides valuable insights into a property’s history. It can reveal information such as past ownership transfers, boundary disputes or legal restrictions. Understanding a property’s history can help buyers make informed decisions about the transaction before it is finalized.

Facilitate the closing process

The real estate closing ties up all loose ends in the transaction and legally establishes the new owner. In this case, a clean title reduces the likelihood of delays, ensuring that the sale proceeds smoothly and on schedule. This can be especially important if you have a tight timeline for moving into your new property.

As reported by Census.gov, July of this year saw the sale of 714,000 residential properties. Many of those home buyers protected themselves by implementing a title exam, which offers immense peace of mind when it comes to investing in a new home.