Are you trying to establish ownership of a piece of land, a home, or another asset? One of the first steps you need to take in order to complete the transaction is to obtain a title report. A title report is a legal document that establishes the current ownership of a property.
A title report is a document that contains two things: a title history and a title search. The title history is an overview of all the past owners’ names, the dates the properties changed hands, mortgage information, judgments or liens, and other applicable notes. To put it simply, it’s a detailed report of all the stamps in the real estate passport.
The title search is the process of researching and uncovering anything in the public records concerning the property and its owners. This may include deeds, court judgments, liens, tax records, special assessments, and surveys. This search will allow for a more thorough investigation of any legitimate claims against the property that may affect the purchase or transfer.
For a business professional, understanding the title report is paramount in completing the real estate transaction smoothly. With the title report in hand, any potential issues can be easily spotted in the data, and the process can continue unimpeded.
Why Are Title Reports Crucial?
When you’re buying a property, you don’t want to be lying in the bed you’ve just made for yourself. A title report is a valuable tool that helps protect buyers from any unpleasant surprises down the line. It serves as a way to avoid legal issues in the future as owning a property can be a hefty financial burden.
Added to that, the cost of due diligence is built into the agreement. That means the seller can’t turn around and demand payment after the fact, which is great news for buyers trying to maximize their investment.
The Takeaway
To complete a real estate transaction, business professionals must understand the title report. A title report provides detailed information about the ownership history of a property, including past owners, mortgage information, judgments, and liens. The title search is a process of researching any items in the public record that may impact ownership of the property.
Though the process can be lengthy, title reports are essential to ensure that the purchase goes off without a hitch. Armed with this knowledge, business professionals can buy and sell real estate with confidence, safe in the knowledge that their transactions will be secure.