Buying that first house is often a whirlwind of paperwork, bank appointments, real estate agent meetings and more. You may find yourself wondering why some of these steps are even necessary. For example, many people wonder about the purpose of title research in terms of a home purchase. If you're navigating the process and waiting on the title research, you should understand the importance of this process. Here's a look at some of the things that the title search may help to uncover.
Mistakes In The Public Records
When it comes to public record updates, the manual data entry and filing involved can lead to clerical errors. These types of mistakes can affect your ownership rights on the property. For example, if the current public record shows the property as clear when you buy it but the title research uncovers another claim on the land, you may legally have to turn the property over to the other party with a claim on it.
Sometimes, property liens are overlooked in the documentation supporting the ownership of the property. In cases like this, you may receive a notice from a lienholder about an outstanding debt on the property even some time after you've purchased the land. Even though the loan was taken out by a prior owner, you'd still be liable for settling the debt. Otherwise, the lienholder could repossess the property since it's used as collateral on the loan in question.
If you purchase a property that's part of an estate after the owner's death, the title research is essential for discovering any possible heirs that could be out there. If you don't identify them, you may find yourself facing problems down the road if someone determines that they should have had legal claim to the land because of their relationship to the deceased.
Encumbrances And Covenants
Some properties have outstanding covenants or encumbrances that can interfere with the legal transfer of the property title. If not disclosed up front, they can often be identified in the title research process. Recognizing them now will help you to avoid problems from unknown property restrictions or other claims that could cost you the rights to your new home.
As you can see, there are many things that can affect the integrity of the title for that property you're buying. Now that you understand the importance of this process, you'll be able to better understand why the title research must be completed before you can purchase that home. For more clarification, contact a business that takes care of title services in your area today.