What is a title search and why is it important when buying a property?

As a lawyer, I can provide legal advice on the importance of a title search when buying a property. A title search is an examination of the official records related to a property to ensure that the seller has the legal right to sell the property to the buyer. This search will reveal any liens, encumbrances, mortgages, or other claims on the property that could prevent the seller from transferring clear title.

A title search is important because it helps ensure that the buyer will receive clear title to the property free from any unknown claims, liens or encumbrances. If a title defect is discovered, the buyer may require the seller to fix the defect as a condition of the sale or may choose to renegotiate the purchase price of the property. Title insurance can also be purchased to protect the buyer against financial loss related to a title defect that was not discovered during the title search.

It is important to note that a title search may not reveal all potential title defects or claims to a property. For example, a property may have unknown defects, such as unrecorded mortgages or encumbrances, that were not discovered during the title search. In addition, some claims on a property such as easements, zoning ordinances, or environmental liens may not be discoverable through a title search.

To ensure that the buyer receives clear title, it is recommended that the buyer hire a qualified title professional, such as a title company or real estate attorney, to conduct a thorough title search. The title professional may also provide title insurance to protect the buyer against financial loss related to undiscovered title defects. Buyers should also carefully review all real estate documents before signing them and should consult with a real estate attorney if they have any questions or concerns.

In sum, a title search is a crucial step in the process of buying a property. It helps ensure that the buyer will receive clear title to the property and avoids any costly legal disputes that may arise from unknown title defects.