A title search is a crucial process in the context of an escrow and title company, often performed during real estate transactions. Here’s a breakdown of what it involves:
A title search is the process of examining public records to determine and confirm a property’s legal ownership and to find out if there are any claims, liens, or other issues that could affect the transfer of the property title.
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Definition
A title search is the process of examining public records to determine and confirm a property's legal ownership and to find out if there are any claims, liens, or other issues that could affect the transfer of the property title.
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Purpose
Verify Ownership: Ensures the seller is the rightful owner of the property.
Identify Claims or Liens: Checks for any legal claims against the property, such as mortgages, liens, easements, or other encumbrances.
Clear Title: Aims to provide a clear title, meaning there are no disputes or legal obstacles to transferring ownership. -
Steps Involved
Public Records Search: Investigating records held by the county recorder, registrar, and other local authorities.
Property History: Reviewing the chain of title to ensure there have been no issues with past transfers of ownership.
Identify Encumbrances: Looking for any liens (e.g., unpaid taxes, mortgages) or restrictions (e.g., easements, covenants) that need to be resolved before the sale. -
Outcome
Title Report: A detailed report is prepared outlining the findings of the title search.
Title Insurance: Based on the title search, title insurance may be issued to protect the buyer and lender against future claims or disputes over the property. -
Importance in Escrow
Ensures that the buyer receives a clear and marketable title.
Protects both the buyer and lender from potential financial loss due to title defects.
Facilitates a smooth closing process by resolving any title issues beforehand.
Getting started is quick & easy
For Arizona Premier Title or any other title company, conducting a thorough title search is an essential step to ensure the integrity and legality of real estate transactions.