Before you can finance or purchase a property, you need to ensure the seller has the right to sell it. It may sound unnecessary, but there are a few reasons to consider a title search before you close the deal.
What Is a Title Search?
This involves going through the public records. The point is to discover whether or not any unsuspected issues may adversely impact the use or ownership of a property.
Conducting a Title Search
Conducting a title search seems overwhelming. Most times, buyers choose to defer the process to a title company, especially if a title insurance policy is being issued. While it’s certainly a time-consuming process, it is not as daunting as it seems, especially if you know where to look and what to look for.
To get started, you need the property’s lot number, parcel number, and description. You will find all of this information at a tax assessor’s office in the same area where the property is located.
Once you’ve got that information, you can make use of it to find out more at either the courthouse or the county clerk’s office. This is when you can request to see the deeds and titles.
When you conduct your insurance title search, you will find the following important information:
- The name of the property owner
- The date the title was recorded
- Details about encumbrances or liens
- Details on any other limitations or restrictions
If you don’t have the time to do the legwork, or understanding the various documents and what they mean, the best option is to call a real estate attorney. An experienced professional can perform a comprehensive insurance title search and pick up any issues with the title of the property you wish to purchase. An attorney also can insure the property’s title so that neither you nor the seller is held responsible for any future issues. If you have a lender, they will require a title company to perform the search and issue a title policy.
What’s more, you can use the search information to ensure you don’t take on the responsibility of an unclean title. That is a title with liens that could lead to legal problems down the line.
What a Title Search Can’t Tell You
There are a few hidden hazards that even the most in-depth title search won’t reveal. For example, the property’s last owner might have incorrectly recorded their marital status. Something like that could lead to a claim by a legal partner.
Other things a title search won’t tell you include clerical errors within the records, forgery and fraud, confusion due to identical or similar names, and mental incompetence.
These are all defects that can rear their head once you’ve purchased the property, jeopardizing your right to ownership unless you have the title insurance to protect your rights.
Do You Still Need Title Insurance After a Clean Search?
Even if your title search comes back squeaky clean, it’s still a good idea to take out title insurance. One of the biggest reasons for this is that some issues can arise that aren’t covered in the original search. Also, the lender will likely require you to take out title insurance, regardless of whether or not a title search has been conducted.
As for how long a title search takes, you can expect to wait around 5 business days or less for your report. Take note, though, that if the person conducting the search requires copies of every document listed on the search, it may result in a delay. But in many cases, the report can be rushed and delivered within as little as three working days.
Request Your Title Search in Florida
The team at Principal Law Firm includes experienced and knowledgeable real estate attorneys. Whether you’re a real estate agent, lender, or homebuyer in Florida, we can do the legwork for you.
Book an appointment to discuss your property rights and insurance today with Principal Law Firm.
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