Introduction
A title search report is a document prepared by an expert property lawyer after meticulously examining registered deed records at the Sub-Registry Office and other available property documents. Its purpose is to verify the legal ownership of a property and assess any potential issues. Here’s what you need to know:
Key Elements of a Title Search Report
- Ownership Verification:
- The report confirms the legal ownership of the property.
- It ensures that the seller has the right to transfer ownership.
- Liens and Encumbrances:
- A thorough search reveals any liens against the property.
- It identifies judgments or claims that may affect the property.
- Tax Status:
- The report includes information on unpaid property taxes.
- Understanding the tax status is essential for buyers.
Process of Title Search Report
Step 1: Gather Information: The first step in the title search and examination process is gathering relevant information about the property.
Step 2: Access Public Records: Once the necessary information is gathered, the next step is to access public records. These records are typically maintained at the county clerk’s or recorder’s office.
Step 3: Perform Title Search: Conducting a title search involves examining the public records to trace the ownership history of the property. This step is crucial in uncovering any existing liens, encumbrances, or legal issues that may affect the title.
Step 4: Evaluate Title Issues: Once the title search is completed, the title professional evaluates any potential title issues that were uncovered. This may include outstanding mortgages, unpaid taxes, judgments, easements, or other encumbrances.
Step 5: Prepare Title Report: After the title search and evaluation, the title professional prepares a title report. This report summarizes the findings of the title search and examination process.
Step 6: Clearing Title Issues: If any title issues were identified in the title report, the next step is to address and resolve them. This may involve working with the seller, relevant parties, or legal professionals to clear any outstanding liens, pay off debts, or obtain necessary releases.
Step 7: Title Insurance: Finally, before closing the real estate transaction, it is common for the buyer to obtain title insurance. Title insurance protects the buyer and lender against any unforeseen title defects or claims that may arise in the future.