A title is the owner's right(s) to possess and use a real property.
Why is transferring title to real estate so unique?
Unlike buying a car or television, land title is permanent. While the function of most
other forms of insurance is to protect you against losses arising out of unforeseen
future events, the primary purpose of title insurance is to eliminate risks and prevent
losses caused by defects in title arising out of past events. You need to know the
marital status of the seller and whether there are lawsuits or judgments against a
former owner. Various rights may have been acquired by others even if the land has
never been built upon (e.g. mineral, air or utility rights). It is necessary to determine
what rights are outstanding in order to transfer a clear title to a piece of real estate.
What is a title search?
A title search determines from the public record what the rights to a property are and
who owns them. Documents searched include court records, property and name
indices. The sellers right to transfer ownership is verified, along with and claims,
defects or other rights that may affect the property.
What kinds of problems can a title search reveal?
Some examples are unpaid taxes, unsatisfied mortgages, judgments against the
seller and restrictions on the land.
Are there any problems that a title search cannot reveal?
Fraud, mental incompetence, and clerical errors are examples of the hidden history
that a title search may not reveal. Title insurance is needed to protect against such
defects coming to light after you have purchased your home.
What are a title work companies responsibilities in addition to conducting the title
search?
In addition to correcting any minor title problems (i.e. taxes owing), the title company
will work with your lender and provide them with a copy of the Title Commitment and
the amount of the annual property taxes as well as ensuring their detailed closing
instructions are followed to the letter. The will also ensure the sellers tax payments
are up to date.
(information from http://www.palandtransfer.com/faq.html)
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
