If you’re a buyer, signing a contract to purchase a house can have you mentally arranging furniture and planning your house-warming party. If you’re the seller, it might feel like it’s time to book the movers and put in your change-of-address form. Not so fast though! Before you actually close, there are many negotiations and due diligence that need to happen first. One such item is the title search. What types of issues can come up in title searches?

Title searches are a protection for the buyer and their lender, if applicable. Title searches can uncover multiple issues that will prevent the title from being successfully transferred from the seller to the buyer at closing. They can also uncover issues that may arise after the purchase goes through, at potentially great expense to the new owner.

Issues that can come up in a title search include:

• Liens on the property such as multiple mortgages, balances due for work to the house, unpaid HOA dues, tax liens or judgment liens such as bankruptcy
• Errors in the public record, like incorrect property descriptions or other clerical mistakes
• Claims of ownership by other parties or disputed inheritances in which the deceased owner willed the property to an heir
• Differing boundary surveys or boundary disputes with neighbors
• Zoning or easement restrictions
• Hazardous materials present on the property or elevated risk for disasters such as flooding that were not disclosed
• Structural issues, plumbing issues, electrical issues or other defects
• Forged signatures or other documentation

As you can see, there are many issues that can arise during a title search. Luckily, the title search is performed well before it’s time to let the ink dry at the closing table. Having a title search completed as part of your home buying or selling process ensures that there is plenty of time to have title issues rectified, so that both buyer and seller are protected from potential headaches, hassle, liability and bills later on.

Want another way to ensure you are protected, especially if you are the buyer? Consider investing in title insurance. Title insurance, much like other forms of insurance, kicks in if something goes wrong; in this case, if a title defect is uncovered. Want to know more about title insurance or need a trustworthy company to handle the heavy digging to unearth title issues? At Clear Title, our team looks forward to assisting you with all of your title needs. Contact one of our conveniently located offices to get started.

Pensacola: (850) 361-4029

Pace: (850) 994-3838

Pine Forest: (850) 202-8518