Does your hand get tired just thinking about closing on a home purchase? It’s no secret that you’ll be required to sign what feels like a thousand documents to complete the purchase, and while you might get a hand cramp doing it, there is one document that is especially important, and even exciting to sign…the deed to the title! What is a title, and what is the purpose of a title?

A title is a document that declares the rightful, legal owners of a property. Be it a tract of empty land, an apartment complex or your dream house, every real estate property requires a title as proof of ownership. Why a title though? Titles serve several purposes:

• To prove ownership: No title? No proof of ownership. Titles ensure that only the rightful owner has legal claim to or responsibility for the property. If a person is not on the title, they have no ownership claim to the property.

• To document liens on the property: A title must be “clear” before it can be transferred to a new owner. Liens may be placed on the title of a property as an assurance that the owner will pay a debt to another party; assets on the title are used as collateral until the debt is paid off. Liens also ensure that the debt ownership is not unwittingly transferred to the new owner, who would then take on the financial responsibility to clear the lien.

• For public record: Property ownership is considered public information. When the title is transferred and filed with the government, the information on the title, such as names of the owners, the name of the lender and the amount of the mortgage, become public record.

Excited to sign the deed to transfer the title to your name now? First you’ll want to make sure the title is clear to transfer, and purchase title insurance to protect yourself from costly potential defects in the title. Luckily, Clear Title, LLC can handle every aspect of the title search, insurance, and closing under one roof. To speak to us about our title services, closing services, and even escrow services, call one of our Pensacola area offices today!

Pensacola: (850) 361-4029

Pace: (850) 994-3838

Pine Forest: (850) 202-8518