Monday, June 22, 2015

What is a Title Search?

Before a property is handled over to new owners, a "Title Search" is conducted. There are so many terms are thrown at buyers when purchasing a home.

It can become overwhelming!

Have no worries for in this article I will explain the “Title Search”. Whether you are purchasing a luxury condo in Bal Harbour or a single family home in Aventura one necessary step in the process is the “title search”.

Today I explain the following:
  • What are a title search and its purpose
  • Who performs this research
  • Costs involved in obtaining a title search
A title search is the historical history of a house; it is sort of like the DNA of a property. This report includes:
  • A full legal description of a unit
  • Name of the current owner
  • Any mortgages on the property (liens)
  • If there were foreclosures on the property, these would show up
  • Tax information and the status of payments
  • Additional Liens held on the property
The purpose of a title search is to confirm the current owner has the legal right to sell the home. Also, it will reveal the mortgages that must be paid off, and all other liens must be satisfied. Real Estate taxes must be paid and current.

A title search will also review if there are any limits as to how the property can be used. As an example, if a business can be established in a residential local.

A title search can be conducted by two organizations, a title company or a real estate attorney. If you do a search over the internet, you will note there are many businesses that offer to provide to you this type of investigation, for a fee of course.

My suggestion is to leave this valuable and necessary work up to a professional… better safe than sorry.

The costs can vary for this step, but the good news is the SELLER pays for the title search.

Do you have other real estate questions? I can help you. Contact me at 786.797.9088 or drop me an email here.

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