If you don’t conduct a house title search on a property, you’ll be in the dark about its past, present, and future. A homeowner may have assured you there aren’t any liens against the property, but you may perform a public records search and discover that he or she is in trouble with the Internal Revenue Service.
This is just one example of something that could go wrong if you neglect title searches. Without due diligence, your dream home can turn into a legal nightmare. Play it safe and perform an easy online house title search before you sign off on any property exchanges.
Ensure the Existing Title Is Clean
There’s a wide range of things that could go wrong with a home or property title. The owner could have made a filing error, there may be a forgotten encumbrance, or an ongoing border war you don’t know about could threaten your property line. These are common problems that ultimately affect the ownership of a property.
For example, there may be an easement that gives someone other than the owner rights to the property. If you purchase the home without being aware of the easement, you may lose your home down the road to a third party. A title search can prevent this major issue.
A property owner may purposefully hide information to close a sale. In many cases, however, the owner him/herself isn’t even aware of issues with the title. Take it upon yourself to do the research to ensure a clean title. Don’t trust an owner or even a real estate agent’s word. A clean title is important for the safety of your investment and your future. Taking a few minutes to perform an online house title search can make all the difference.
Check the Accuracy of the Chain-of-Title
A chain-of-title is the history of a property title’s transfers. A complete chain runs all the way back to the original owner of the property, giving a comprehensive list of every owner up until the present. Checking for holes in a home’s chain-of-title is necessary if you’re interested in purchasing title insurance. Title insurance can protect you from financial loss if there are title defects after purchase. Most insurance companies won’t issue title insurance until a clean chain-of-title is verified.
Find Any Outstanding Liens
A lien is an entity’s right to keep possession of someone else’s property until the property owner pays off his or her debt. When a creditor, the IRS, or another party attaches a lien notice to a property, it becomes a public record. Searching for liens online is an easy way to guarantee you aren’t purchasing a house from someone who owes money. A public records search using the home’s address or the property owner’s name can come up with documentation of IRS liens, state tax liens, hospital liens, child support liens, mechanic’s liens, and abstracts of judgment.
An adverse lien (or one the owner doesn’t take on voluntarily) on a property can complicate a buyer/seller transaction. While the lien on the property doesn’t become your problem after a sale, it can prevent the person from selling the home to begin with. Property liens typically get solved upon the sale of a home.
The money for the home will first go to the lenders and the remaining money goes to the property owner. However, some liens can force the homeowner into a foreclosure. It’s important to know about existing liens before you buy to make absolutely certain that you don’t end up responsible for settling another person’s debts.
Buying a home or piece of property is a major decision – one the buyer shouldn’t take lightly. An online house title search can give you peace of mind so you can enjoy your new home without worry.
