Hi, I’m Chris Harrison, managing broker here at Main Place Real Estate. Today I’ll be providing an overview on the importance of a title search and title insurance, which we in the industry often refer to as title work.
The first part of title work is a title search. A title search is performed by the title company to verify that there are no judgments or liens on the property that you’re planning to purchase. This is important because as a property buyer, you want to make sure that you’re owning a property that has a clean title, and will prevent you from future legal concerns regarding your property once you are the owner. The title search is performed by the title company once the buyer and seller have reached an agreement to execute a purchase contract.
The second part of title work is title insurance. Title Insurance is just what the name says. It’s an insurance policy provided by the title company to ensure that no judgments, false recordings, or liens were missed during the search and are tied to your property after the sale. Whenever buying a property, you want to make sure that it comes with a title insurance policy. In the event that a judgment or lien was accompanied to the property after the real estate transfer, a title claim could be filed and the title insurance policy would cover the cost of clearing the title. This ensures that you have a clean title on the property that you own.
Title work is a very important piece of the real estate transaction that the average buyer or seller knows little about. So now that you’ve read this article, you are above average – congratulations! Reach out to me and the Main Place team for all of your real estate needs.