What is Title Search Process?

Hey there,

A very tragic incident happened to a very close friend of mine who bought his very first house. He used most of his life savings to buy that house only to find out that the seller was not the actual owner of the house and that someone else had the legal claim over the house. This is when I genuinely realise the importance of the title search process. I am so glad you asked this question as it is a very important concept which people need to be aware of especially if they are investing in a property. Please keep reading as I will explain everything I know about this process.

What is Title Search Process?

A property title search looks at public records on the property to determine who the legal owner is. If there are any claims or liens on the property that could impede your purchase, the title search should identify them.

One of the most significant aspects of obtaining title insurance for homeowners is the title process. It's also one of the aspects of home buying that real estate agents, home purchasers, loan officers, and mortgage brokers are frequently unaware of. The more you know about it, the smoother the closing process will be, and everyone involved in the transaction will appreciate how it protects them, their buyers, sellers, and assets.

Whether you need a lender's title insurance policy, an owners' policy, or both, or simply want to check if a property has a clear title before beginning the sales and buy process, it all starts with a public records search.

• Searching the Public Records:

  An in-depth title search usually entails a thorough investigation of public records, which are made up of three sorts of data: personal, tax, and property data. The search of public documents, which normally includes visits to the offices of recorders or registers of deeds, clerks of courts, and other officials, serves as the foundation for title insurance.

• Abstract of Title

  : The abstract of title and chain of title outline the property's history of ownership and transactions, as well as any encumbrances. This allows the buyer and title insurance to track ownership back to the present seller, ensuring that the seller on the contract has the legal right to sell.

• Title Commitment

  : Following that, the title underwriters will issue a title commitment. This document explains how much coverage you have, the policy's conditions, any exclusions, and any issues that need to be rectified. Without a title promise, a mortgage lender will not close the transaction.

• The Title Insurance Policy

  : The title insurance policy isn't activated until the deed transfer is completed and the policy premium is paid, both of which occur on closing day. It's what protects your money, your property, and your legal rights.