After you make your decision final about purchasing a property and arranged all the financial support for the transactions, first and foremost you need to run a title search for the desired property.
What is a ‘title search’?
In real estate, there remains a risk involved in the ownership of the title to the property. A real estate title is a bunch of rights that the property owner enjoys. These rights of the owner include- living in, selling the house or giving out for lease. The deed is a contractual paper that transfers these rights to the title from one owner to the other.
Step by step procedures of title search:
- · Chain of title –The history of ownership of the property that gives the information about who bought and sold and when. Information is obtained from public records or private title plants.
- · Tax search –This reveals the present status of the general taxes against the property. It reveals whether the tax is current or it is due from any previous years.
- · Report on possession –Inspectors are sent for a site visit to verify that all information provided by the public records are true and will not affect the owner’s title and intended use.
- · Name search and judgment –It is to verify whether there is any unsatisfied judgment against the previous owner when he owned the title. This raises the question as to whether the owner and the seller are the same people.
After the above formalities, the title company will issue a commitment to state the conditions under which the title is insured.