As you get ready to close on your home, there will be a variety of different closing costs that you need to pay. One item that will be highly recommended is a title search. While it may seem like a really basic thing, it's actually necessary for anybody buying a house. Here's what you should know about getting a title search.
What Is A Title Search?
The purpose of getting a title search is to have a company do a thorough job researching your home's title. They'll try to find anything that can challenge who actually owns the property you are buying. For example, a title search can discover that the current owner of the house isn't the lawful owner.
A title search can also find issues that can impact your home purchase, even if the current owner is the correct owner. This includes existing tax issues, liens on the property, or divorce decrees. You will be immediately informed of any problem found during a title search, which can be used during negotiations with the seller. You can use this information to walk away from the sale or request that the issues are resolved before the sale moves forward.
An added benefit of having a title company perform a title search is that they insure that the title has been cleared for your purchase. If something was missed during the title search, the provided insurance will prevent you from paying any money to have the issue resolved.
What Makes A Good Title Search Company?
As the buyer, you can pick the title search company for your home purchase. The seller may have a preferred company, but you can pick whoever you want. With that said, you may not know what to look for in a company to perform this important task.
Start by asking your realtor if they have personal recommendations, since they have a lot of experience working with these title companies. This can help narrow down the selection to a couple title search companies.
You can then narrow down the search by looking at the exclusions that each title search company has. This will give you an overview about what problems will and will not be covered from their title insurance coverage. Picking one company with a more comprehensive insurance policy is ideal, because it can prevent you from paying the legal costs to resolve an issue that is found down the road.
For more information about doing a title search, talk to an agent at companies like Celia Dunn Sotheby's International Realty.