Buying a home is, by all means, a major investment. Every home buyer dedicates time searching for that perfect abode, one they will hope to raise their families in.
One of the important steps you need to take after identifying your dream home is a title search. But why should you conduct a title search before closing a home purchase deal?
Here are two benefits of conducting a title search on a property.
To uncover any liens on the property
If the property you are about to buy has been used as collateral, it will have a lien on it. This would tell you that the seller owes their creditor some money. A property can have liens if the seller fell behind their mortgage payments, or if they have not paid the contractor for work done on it. Still, a lien can be placed on a property if there are unpaid taxes on it.
A title search will help you uncover any liens on the property so the seller can take care of the debts in question before any transaction can take place. Obviously, you do not want to purchase a property that has financial issues.
To establish the property’s chain of title
A chain of the title refers to the history of the property’s ownership. A title search will help you establish whether the seller is the legal owner of the property. Clearly, a title that cannot establish the property’s true current owner could be fraudulent, and you do not want this. The last thing you want is a long-lost heir showing up to claim the home that you have spent your hard-earned money on. A diligently done title search will help you ensure that the property in question is clean. No fraud, no grey areas. This will give you peace of mind knowing that you are not risking your money.
A home purchase is a big deal. Find out how a title search can help you safeguard your rights and interests during the home purchase.