The title search is one of the steps that a buyer needs to do before buying a piece of land as it will protect them against liabilities associated with the property.
The title search is like how employers do background checks of their potential employees. When doing a title deed search, you are seeking to establish the true owner of the land, the true size of the land, errors that might be associated with the property.
Even if the title is clean and seems free from errors, it is very important that you take due diligence and conduct a title search on the new property that you intend to purchase as a buyer.
The process of title search often starts after the buyer makes an official offer to purchase the piece of land. It is often conducted by the real estate agent or your legal officer depending on the state you are in. And the cost is often shouldered at the buyer.
So what are the real items to look for when conducting a title search? Well, in this article we are going to discuss each case that we have identified. They are red flags that the title search identifies.
Improper title transfers
This often happens when the responsible authority does not complete the transfer of the title deed to the new owner of the land. The error is traceable to the paperwork.
Correction of such errors clears the title deed and the sale process can be completed from there.
Tax liens
These are accrued land rate taxes and they are often put against the land. As a buyer, you need to know this information and can be revealed only through a title search. It has to be cleared before the title is transferred otherwise the buy will suffer from the burden.
Boundary encroachment
Boundaries of land recorded in the title deed should be able to reflect on the actual boundaries in the ground. Sometimes, you can have a discrepancy in the size of land in the title deed and the actual size on the ground. This is why a land survey needs to be done besides title deed search during the sale process
Forgeries
Title deed forgery is often common in real estate and you as a buyer should conduct a title search to establish the true owner of the land.
Unknown owners
A title deed is a document that acts as proof of ownership. If there is someone who was recorded in the title deed and not present during the sale, will complicate the process.
Every owner during the sale process should have their consent in writing that the parties involved are authorized to conduct such business on the land.
In conclusion, every buyer needs to take a title search really seriously to avoid unexpected shocks after completing the payment.
Some errors can be easily being solved, while others might be a bit complicated and might need the seller to resolve through court determinations. A single problem on the title deed might make the development of your property postponed till it is cleared.
