Property titles are the documents we use to represent ownership of land. When you buy or sell property, the transfer of title completes the process. However, titles and the record system that supports them are not infallible. That is why we use title examination for property transactions.
But what is a title examination?
This post will cover title examinations and their importance for property transactions.
A title examination is a search of the records associated with a title. These examinations investigate issues like the chain of ownership, tax history, changes to local ordinances, and more. It may also include research into the legal and financial records of the individuals or entities associated with the property.
The purpose is to ensure the title is free and clear for sale and that there are no issues. Various issues and ownership disputes can affect the legality of a title transfer, and they could cause problems for the buyer in the future. By performing a title search, you prevent these legal issues.
Now that you know what a title examination is, let’s examine why it is important.
A title examination helps verify that the seller is the owner and that they have the right to sell. It may also uncover other people who have rights to the property. An examination may also find a gap or discrepancy in the chain of ownership.
The legal description on a title can have significant implications. In some cases, typos or missing words could impact the legal description. For example, there could be a missing number, or it could say southeast when it should say southwest. Buying a property with an incorrect description could have an impact on ownership.
The current owner could have tax debts, liens, or other encumbrance on the title. Liens can mean the owner does not have the right to sell. If someone does buy the property, they need to clear the debts. A title examination can find these issues and prevent a bad purchase.
Some properties might have easements. If this is the case, the easement can affect your rights to use and alter the property. It can also impact the property’s value.
For example, a neighboring property’s owner might have the right to use a road on the property in question.
Another crucial reason for a title examination is that you might need one to close on a property. These are just a few of the reasons why title examinations are essential.
Do you need expert title examination services? Click here to contact the team from Title Group of Tennessee. We offer a full range of title services for property transactions in Tennessee.
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