Buying your new home is probably going to be the most significant purchase you’ll ever make. This is an exciting time but because of the sums of money involved, you also want to think about protecting yourself.
Something you will want to do before committing to a purchase is a title search. This provides you with some key legal information that you’ll need before moving forward with the deal. Outlined below are a few key reasons why conducting a title search is so important.
Who is the true owner?
You’ve viewed the home and have even spoken to the current owners. But is it possible that there is more to it than meets the eye? How do you know that the sellers are really who they say they are or at least have full ownership of the property?
With any large purchase, it’s important to verify ownership details before making a deal. Performing a title search will provide certainty that you are negotiating with the true owners. It is not unheard of for individuals to sell shares of property that do not actually belong to them legally. Not only can this make the deal void, but it can leave you out of pocket.
Is the property under liens?
Homes and other properties are often utilized as collateral for loans. Before parting with your hard-earned cash, it’s vital to make sure that there aren’t any liens on your prospective property. If the property is acting as collateral against a loan, then you could be liable to pay off the debt when you become the new owner. This is an unnecessary expense that a title search can help you to avoid.
There are various factors to consider when engaged in a real estate transaction. Having legal guidance behind you will help ensure that your legal rights are protected.