When it comes to purchasing a home or land, there are several steps involved, though one of the most important is the title search. While a piece of property is new to you, there is history with that property that plays a role in determining the success of your investment. A thorough title search can protect you from legal and financial issues down the road by revealing potential defects. Here are three reasons you need to be sure to invest in title search services before finalizing any purchase.
Ensure the Proper Chain of Title
A chain of title outlines every single ownership transfer of a piece of property. Ultimately, this goes back to the initial owner and should continue with no gaps to the current seller. By verifying this, the title search will make sure that the seller is able to sell the property legally.
Discover Easements That Are Unknown
When purchasing land or a home, you expect that you will have complete control over how it will be used. Unfortunately, it is possible for a title search to discover that an easement exists and gives access to the property to a third party. This could essentially allow a neighbor to go through your yard to get to the main road or give permission to utility workers to enter your yard. Easements ultimately limit the overall use of your property and reduce the amount of land that you have to build on.
Check for Existing Liens Against the Property
A title search will also uncover if there are any existing liens out against the property. A lien is a judgment issued by the court to satisfy a debt that has gone unpaid by a previous owner. There are many reasons why a lien may be attached to a piece of property, such as unpaid taxes, back child support, and more. It is imperative that you discover if there are any liens against a piece of property before finalizing a purchase, because if you go through with the purchase and find out that there is a lien against the property, you will become responsible for another person's debts.
Title issues are far more common than you may think. To ensure that your real estate investment is safeguarded, it is crucial that you work with a professional and ensure that the property that you are considering purchasing is a safe investment. For more information, contact real estate title search services in your area.