Title is the foundation of property ownership. It defines your right to possess and use your property.
As a buyer you are almost always required by the lender to have the title searched for matters that can affect your property. Issues can be anywhere from unpaid taxes to mechanic liens. Lenders will also require title insurance to help protect you as a buyer for any title matters that might come up after the sale. Even if you’re buying with cash you should always still perform a title search and obtain title insurance.
Every title will have different rights and interests. . It is possible that someone besides the seller has a legal right to the property or an interest in the property. It’s also important to run a title search to see if there are any clouds on the title that needs to be taken care of before the buyer closes on a home. The title officer’s duty is to clear any such clouds before closing. Not all matters show up on a title report. Usually only recorded issues will show up. That’s why it’s very important to get title insurance. A good title policy should cover most of the issues that can arise after closing. Issues that can arise could be easements, tax liens, mechanic liens, mortgages, errors, forgery, mistakes in records, & undisclosed heirs
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