Planning A Funeral The Right Way

Posted on: 1 July 2021

Each transaction for the purchase of property ends with a legal transfer of ownership from the previous seller to the new buyer. After the closing, the transaction is legally recorded as part of the land records for the area. The new record, along with existing ones, forms the chain of title and denotes the entire ownership history of the property in question. 

If you are preparing to purchase a home, parcel of land, or other types of real property, the following information will help you understand the land title search process and the value it brings to you, as the new owner. 

1. How a land title search is performed

Land title searches begin with researching publicly available data, such as the records available through the county assessor, collector, or recorder's office. Title searches are typically performed by a qualified land title company researcher called an abstractor, but this type of research is sometimes also be done by a qualified attorney.

Some examples of the publicly recorded data that may be reviewed during a land title search include, but is not limited to:  

• property deeds, including quitclaim, bargain, and sale, deed of trust, warranty, grant, and mortgage
• financial records, including liens, notices of foreclosures, and others
• marriage, death, and divorce records that can affect the property
• surveys, assessments, easements, plats, and other records

Once all necessary records are located and reviewed, a new abstract of title is produced specifically to the land being purchased. 

The abstract of the title clearly shows a chronological record of past transactions related to the property of which the title is being researched. An accurate abstract of the title will also include all available existing records associated with the property to help clarify past and present ownership. 

2. Why a land title search is necessary

While a land title search is not legally required for the transfer of land, having one performed is the best way for prospective buyers to be assured that the property being purchased does not suffer from encumbrances or potential questions about ownership that could cause the purchase transaction to close, be delayed, or canceled. 

Some of the most commonly discovered issues found during a title search that are capable of interfering with finalizing the sale include unpaid taxes or assessments, liens for past construction or repairs, and issues with encroachments, easements, or boundary lines. 

3. How buyers can protect their interests

When a problem is discovered during a land title search, the closing can be delayed until the problem is successfully addressed. Some types of problems found during the abstractor's search may be relatively easy to correct, such as taking steps to correct typographical errors or locate and record missing documents to complete the chain of title. 

Buyers should also consider purchasing a title insurance policy to protect their interests in the property, should a title defect be discovered after the closing of the transaction. Most mortgage lenders insist on protecting their financial interests in the property by having a lender's policy of title insurance issued and paid for as part of the closing process.

Property purchasers can, at the same time, choose to have a buyer's policy of title insurance issued, for a nominal one-time cost. Title insurance policies for lender's and buyer's coverage are in effect for a lifetime with no further policy premium payments due. 

The cost of having a professional title search performed by a reputable land title company is not expensive, especially when it offers the buyer critical information about the property, its past ownership, and any potential risks that exist that could interfere with the new buyer's ability to own and utilize the property.

Prospective buyers who have additional questions about land title searches should take time to contact local real estate services before moving forward.