A title search is an early warning system for buyers and lenders. It reveals flaws the owner must resolve prior to a closing or refinance request. This allows the owner to clear any issues on the title so that the process can move forward. Also, it protects the buyer or lender from assuming an obligation they aren’t responsible for.
Title Search
A chain of title exists in the public records. It shows the history of property title transfer from each previous owner to the next. Unfortunately, these searches are labor intensive and require a specialist called a title examiner.
The search may take the title examiner back to a time when property laws were much different. Technically, only 40-60 previous years are required, but this may omit important information on older properties. Therefore, title examiners typically go back to the original owner.
Tax Search
The second step involves a search of tax records to ensure there are no unpaid taxes that could result in a tax lien on the property. The local municipality could hold buyers responsible if the taxes aren’t paid prior to the closing.
Inspection
If the title insurance is for a refinance loan, the lender often orders an inspection. The inspector examines the property to investigate whether there are any encroachments or other defects that affect the title. They also verify the lot size, note unrecorded easements and then mark the location of improvements.
Judgments
Judgment decrees, liens and unpaid federal taxes entail a claim on the property that supersedes a lender’s or buyer’s rights. Therefore, if discovered judgments create a cloud on the title, the current owner must resolve them before the transfer of title to the buyer.
Closing
The lender or buyer and seller can proceed with the closing after all defects have been cleared. However, the title company won’t issue a commitment to insure the property if clouds remain on the title.
Understanding how the title process works can make the closing process easier and might make buyers a little more patient while waiting for the title commitment to arrive.
Your trusted real estate agent and home mortgage professional will be there to guide you through the process and help you communicate effectively with your lender. These partnerships can be a key element in your successful transaction.
Buying your home can be nerve-racking, especially if it’s the first time. The buying process is exciting and often complex. The chances of making a mistake are relatively high. 
After two months of declining builder confidence, the National Association of Home Builders Housing Market Index gained two points in January with a reading of 58. Component readings of the HMI were also higher with builder confidence in current market conditions rose two points to an index reading of 63. Builder confidence in housing market conditions over the next six months rose three points to 64.
When you make an offer on a home, you wait anxiously to see if it will be accepted. Sometimes you’re lucky enough to hear back within hours. Other times you could wait days or even weeks.
Atlanta, Charlotte, New York and Los Angeles are always on the real estate radar because of big ticket sales and good media coverage. The secondary markets – those markets without the celebrity undertones – may actually be better deals. With the price of borrowing money rising and occupation rates dropping in primary markets, places like Nashville and Birmingham are looking better to investors.
If you’re looking to get an untraditional deal on a new home purchase, you may encounter either a short sale or a foreclosure. These two terms refer to sales that are not usual. As a homebuyer, it’s important to understand the differences between them and how each one might affect your buying experience.
There comes a time in every young homeowner’s life when they need a bigger house. When you buy a starter home, it’s unlikely that will be your forever home. But how do you know when it’s time to spend the time and effort to upgrade to a larger home?
If you’re already a homeowner and you’re getting ready to buy a new home, you know it’s tricky to buy and sell a home at the same time. There are lots of questions about how to handle this scenario. What if your old home doesn’t sell quickly?
A growing supply of housing, volatility in the marketplace and risks in the development process all affected the multifamily market in 2018. In 2019, these three factors will continue to move the needle.
Many sellers hire inspectors and appraisers to value their home prior to placing it on the market. It’s important for buyers to hire their own inspector to get an independent opinion. If a buyer orders an inspection before the sale goes through, the seller may have to resolve any issues that arise. If you forego the inspection, you inherit any problems that come with the house.