A title details ownership of a home. When a home is sold, the title is transferred from one person to another. It is therefore a vital part of a real estate sale or purchase. This blog offers facts on title searches for Cherry Hill property purchases, what it is, and its significance.
Title Definition
Title is documentation detailing the ownership and use rights of a property. It is not one particular document but a group of documentation including deeds, contracts, property indexes, loans, etc. These are recorded at the local Registry of Deeds and are available to the public.
Title Searches For Cherry Hill Property Purchases
A title search is a thorough evaluation of historical records relating to a certain property. It begins with the present owners and traces back to past owners. The object of the title search is to identify any issues or outstanding claims that any party may have to a property. The final purpose is to confirm that an owner has the right to transfer ownership to a buyer.
Possible Title Problems
A title search can expose issues such as a lien on a property not being released, unpaid taxes, and judgments against the owner. Some of these may be easily fixed in time for the planned closing while others may take an extended amount of time and effort to repair. Furthermore, rare defects can be hidden and not easily revealed even with a good title search. Some examples are forgeries, misrepresented information, inaccurate deeds, and clerical errors. These may stay hidden for several years and may jeopardize the rights of the current owner when finally uncovered. Title insurance is available to address this risk but does not include coverage for every possible item.
Why Title Searches Are Important
Title searches are a important step in the property purchase process and are usually completed by a closing attorney or closing agent. Regardless of how thorough a title search may be, it is important for buyers to think about purchasing title insurance to cover hidden issues. Speak to your attorney for more information on title searches for Cherry Hill property purchases and to make an educated decision on title insurance.
