Like automobiles and other larger items, real estate has a title to it. As the owner of the property, you want to make sure that you legally have the title to the property, and that’s where the experts at Ector County Abstract & Title come into the picture. They help to ensure that you don’t have a fraudulent title to a piece of property, and they do this by consulting the various records that they have and have access to.
What Is A Title Search?
A title search involves looking back through the reported records for a property. This is done to ensure that the sale of the property was done properly from the original owner up to the present owner. If there are any discrepancies they can be brought forth and then dealt with. The last thing a prospective or even current owner wants is to have someone pop up and claim that they have an ownership stake to a piece of property.
During the title search, the title company also looks for any outstanding mortgages, liens, judgments, or unpaid taxes associated with the property, as well as any restrictions, easements, leases, or other issues that might impact ownership. The title company may also require a property survey, which determines the boundaries of the plot of land that a home sits on, whether the home sits within those boundaries, whether there are any encroachments on the property by neighbors and any easements that may impact an ownership claim.
Why Do You Want Title Insurance?
There are two main types of title insurance: owner’s title insurance, which protects the property owner from title issues, and lender’s title insurance, which protects the mortgage company. You, the home buyer, will pay for the lender’s title insurance when you close on the house, but it’s also a good idea to make sure you have an owner’s title insurance policy as well.
Let’s look at a possible scenario. You buy a home and get both owner’s title insurance and lender’s title insurance. After a few years, someone comes forward and claims that they have the rightful title to the property you own. If it turns out that this person is correct, the title insurance you and the lender have will result in you getting your money back on the purchase. While this doesn’t give you your home, you aren’t out any money, so the title insurance is worth the cost. For a real estate title company near you, please contact us today.