How a Title Search Can Make or Break Your Closing

Before the purchase or sale of a home, you need a title search to ensure that ownership of the home can be legally transferred from one party to the other.

September 10, 2020
By Mototext Homes

A title search consists of information relating to real estate, including the chain of title, recorded liens, ownership, and other details about the property. Title searches are often done to confirm the legal ownership of a property. It will also reveal if there are any mortgages, liens, taxes, or other encumbrances. Any and all of these factors can impact how and if a property can be sold free and clear.

What is a title search?

A title search is a process where an attorney or title company searches public records to verify ownership and uncover liens (debts) attached to a property being sold.

In the process of selling your home, Mototext Homes issues a title search to uncover any unknown liabilities or unresolved debts linked to your property. This is not a "gotcha" moment. Issues found with the property must be resolved prior to selling your home to properly transfer property rights and get it sold. Any debts under the initial owner's name are paid in full.

What can be found in a title search?

A title search is a collection of public records and other documentation on a property to find previous deeds, mortgages, liens, etc. against a property. The title company delivers information such as:

  • Legal ownership
  • Mortgage liens
  • Encumbrances and other liens (Mechanics, HOA, utility liens, etc.)
  • Property taxes—and whether they are current or delinquent

A title search reflects property details on public record. The title company is responsible to find other issues that could impact the ownership and value of the real estate.

What happens if there is a problem with the title?

If problems arise during the title search of your house, they must be settled before the sale of the home.

Liens or loans against title clear after they are fully paid. The amount of time it takes to clear title depends on how quickly the county moves to process the paperwork and clear the lien. This can take anywhere from 3 to 5 business days.

Most times clearing title is simple. Often, resolving issues means paying off the debt and recording it. This is not different from when consumers clear errors on their credit report. Most of the time, the problems found during a title search clear easily.

Title searches can cost hundreds of dollars. The price will be higher if you are not under contract to sell the property. When you sell with Mototext Homes, we handle the title search for you and it won't cost you a dime. Rest assured we will be in constant contact with you as we go through the selling process.

If you need to sell your home fast, click here to upload details of the property. You will receive a free home evaluation and cash offer.

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