Issues A Title Search Can Discover When Buying A Home

Posted on: 15 December 2016

If you are in the process of buying a home and the title search comes back with issues, you may want to talk to a real estate attorney about this. A title search is an important part of buying a house, but you can find yourself in the midst of problems if there are issues with the results of it. Here are several things you should understand about issues found during a title search.

What is a title search?

When you buy a house, the lender will require a title search. This involves a process of looking through public records to find out exactly who owns the title of the house and if there are liens against it. The most common type of lien is a loan against the house, and this type of lien is expected. There are other types of liens that can create issues when buying a house, and there are also other types of title problems that could create problems as you try to buy this house.

What other problems are found during a title search?

There are a lot of potential problems that could be discovered when a title search is complete, and any problem that is found could prevent you from buying the house. Mechanic's liens are one issue commonly discovered during title searches. If a contractor worked on the house and was not paid, he could have placed a lien on the property. Before the property can be sold, the amount owed for the lien must be paid. If this is detected during the title search, the seller of the home would have to pay for it. If it was not detected, you, the buyer, might be responsible for paying it.

In addition, other issues may also be discovered. For example, a title search might reveal that the person selling the home did not have the proper right or authority to sell the house. If any issue is found during the title search, you will want to make sure the seller finds a legal remedy for the problem before you buy the house.

What is title insurance for?

Getting a title search protects you when buying a house, but buying title insurance is another step of protection. When you purchase this type of insurance, the person that completed the title search for you will take responsibility for any issues with the title that were not discovered during the search.

If you are getting ready to buy a house, you may want to consult with a real estate agent or attorney for protection and help. A real estate attorney can perform a title search for you, and this is a great way to make sure you are buying a house that does not have any liens on it.