For buying a property and getting a mortgage, the most essential thing is to achieve a clear title. Also, no form of legal issues must be there. Thus, the title search process is important. The title is referred to as a collection of rights for the property. While title search determines what the rights are and to whom they belong. This is done to determine whether the person selling the property holds the right and the buyer is getting the rights to the property for which he/she has to do the payment. The title search checks the records which include all the written documents.
Who performs the title search process?
With the help of the examiner, the title search is performed. The information from the title is summarized in an abstract form and recorded as documents. The title search process could either be performed by outsourcing it to an expert mortgage company or could be handled in house.
Title search process steps: To reconsider by mortgage lenders
There are many steps involved in the title search process. Reconsidering these steps before would be helpful to the lenders.
1. Title chain checking
A chain of title involves many historical transfers that reflect property ownership. The chain must always be complete for the title to be clear. Any missing indicates a deed forgery at some point in the property. This break in the title chain can also be caused by an issue that occurs if the old owner used a different name to get the title. This could be solved by quiet title action which confirms the ownership of the property.
2. Check upon the taxes charged on the property
This is done to check if the property tax is in order. By checking the history, one could find out the overdue or unpaid taxes. If there is any unpaid tax, it creates a lien against a property. In some cases, the government might put the property to sell to cover up the tax amount. Proper title insurance could solve the risks.
3. Inspection of the site
Individual who has inspected the property will report the irregularities present which could impact the title. Through inspection, one can confirm whether the property matches with what is included in the title. The size of the property is inspected and confirmed here.
4. Judgement and name search
Through this, any judgments against the previous property of the owners are uncovered. Mainly they include liens related to unpaid obligations. The presence of liens could cause the government to sell the property to satisfy the judgments. So, such judgments should be noted and must be removed by the seller before the title transfer.
Once the title is clear, the next process is a transaction. The buyer can start with the process of acquiring the property when all legal issues are cleared.
The above five title search process are to be reconsidered by the mortgage lenders. The proper execution of these steps would help to achieve a clear title free from claims or defects.
Mortgage outsourcing 360 is a mortgage outsourcing company that could support you with our title services. Our title services include title ordering, searching, transferring, title report, and insuring processes. So to work with us mail at email@example.com