A title details ownership of a property. When property is transferred, the title is transferred from one person to another. It is therefore an essential element of a real estate transaction. This blog offers details on title searches for Eastern MA real estate purchases, what it is, and why it is significant.
Understanding Titles
Title is documentation declaring the ownership and use rights of a property. It is not a specific document but a series of documents that includes deeds, court records, property indexes, and loans. These are entered at the county Registry of Deeds and are made available to the public.
Title Searches For Eastern MA Real Estate Purchases
A title search is a thorough evaluation of historical records on a particular real estate. The search begins with the existing owners and traces back to former owners. The purpose of the title search is to find certain defects or current claims on a home. The final purpose is to confirm that an owner has the ability to transfer rights to a buyer.
Examples of Title Defects
A title search may identify issues such as a liens on a property not being resolved, overdue taxes, and judgments against the owner. Many of these can be quickly addressed in time for the planned closing while others might take significant time and work to resolve. Additionally, certain problems may be hidden and not easily revealed even with a comprehensive title search. Some examples are forgeries, misrepresented facts, defective deeds, and typos. These may remain concealed for several years and may threaten the rights of the current owner when finally uncovered. Title insurance is a program designed to cover this risk but may not apply to every scenario.
Why Title Searches Are Important
Title searches are a critical step in the real estate buying process and are traditionally completed by a closing attorney or agent. Even if they are extensive, it is worthwhile for home buyers to think about buying title insurance to cover hidden issues. Speak to your attorney for further details on title searches for Eastern MA real estate purchases and to make an educated choice about insurance.