A title search is exacting what it sounds like…a search on the title of the property you are purchasing and the title search is part of the real estate closing process.
A person called a title abstractor and working on behalf of your closing attorney will search the public records at the courthouse to check for any liens on the title, verify ownership, check for judgements and any other claims on the property. The title search is initiated by your lender if you are financing or your attorney’s office if you are paying cash for the property. One of many items needed to receive a “clear to close” from your lender is a clean title. Your lender will not issue a “clear to close” until the title search is completed, reviewed by your attorney and verified to be clean.
Any issues found will be resolved prior to closing. Properties cannot transfer ownership unless the title is clean. However, sometimes there are things that may not be found during a title search. If you have title insurance, your insurance policy (and their attorneys) will help you fight any claims against your title.
One of the questions on the buyer information sheet from your attorney’s office asks if you would like to purchase an owners’ title insurance/policy. I recommend you purchase title insurance. Title insurance is a one-time fee that lasts for the length of time you own the property. The cost of the title insurance varies. To get an accurate quote, you will need to contact your paralegal.
