Buying a new home can be stressful as a new homebuyer has to go through what seems like an endless process. It is essential to get the title on the property verified by performing a title search prior to closing to identify any issues that may result in a title issue before the transfer of property. A property title search is conducted to confirm the land’s legal ownership by searching the public records before completing the transaction. An accurate and timely title search assists property buyers in making informed decisions.
Performing a title search involves accessing the official land records and visiting several locations to verify the deeds and encumbrances on a property. In Connecticut, a full 40-year title search needs to be completed when purchasing a property. A full title search will show the chain of title, any open mortgages or liens and any easements/restrictions/covenants on a property. Most homebuyers opt for a title company or attorney to perform title searches on their behalf, as looking for multiple documents makes it a lengthy and tedious process. What most homebuyers don’t realize is that they can choose what company they want to complete their title search. Hiring a professional title searcher will ensure that your report will be completed timely and accurately.
An accurate and in-depth Title Search Uncovers
Ownership Issues
Disputes over ownership may arise when a property is transferred without proper title verification. Documentation errors, missing interests or impersonation of real owners may result in the entire transaction being declared as void. Furthermore, the buyer will lose rights to the property. So, it is essential to conduct an in-depth title search to uncover any issues that could arise in the future.
Errors in Public Records
Filing and clerical errors can affect your property transaction negatively. The borrower may need to undergo financial implications to resolve them. Mistakes in paperwork or listing, missing figures, or signatures can cause a delay. A comprehensive title search avoids that may disrupt a successful ownership completion.
Chain of Title
In real estate, the chain of title refers to the historical record of ownership transfer conducted by a title company or an abstractor to verify ownership and ensure a clear title. Titles should not contain any liens, judgments or foreclosures that can hinder the transfer of title to the new owner. It is verified using various documents concerned with the property purchased. It includes financial records such as mortgages, liens, federal tax liens or judgements.
Encumbrances
It refers to the claims against the property that can affect its transferability and limit its free use unless the title is cleared. These include easements, mortgage dues, liens, unpaid bills or taxes etc. These legal claims reduce the land value to be used as collateral to secure a loan. Encumbrance charges put a hold on real estate transactions and require the lender’s permission beforehand. It is advised to get the records examined at the sub-registrar’s office to ensure there are no registered charges and mortgage on the applicant.
Restrictions and Allowances
Deed restrictions is another title issue that could make the property worthless as a future investment. Boundary disputes and differing surveys could also create problems. Covenants and easements have a huge impact on land so they must be shown on any full search report.
All of the above reasons are why it’s essential to have a professional title search completed before purchasing a property.
At Fusion Title Search, we guarantee that our title search will be completed properly and by the State Statues. A title search from Fusion Title Search will show any defects, if any. Our report will give any homebuyer the knowledge they need to confidentially purchase their future home!