Buyers in real estate transactions often rely on title searches

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Buyers in real estate transactions often rely on title searches

On Behalf of | Jul 11, 2018 | real estate transactions

After finding a home to buy here in Glen Carbon, buyers must go through numerous steps prior to taking possession of the keys. One of those tasks involves conducting a title search. This crucial part of real estate transactions helps make sure that the buyer will actually own the property free and clear.

Many people assume that the current owner of a property is the only one with rights to it. In many cases, that turns out not to be true. A number of circumstances could keep a buyer from having a clear title to the property. For instance, a prior owner may have a judgment lien, tax lien or mechanic’s lien still on record that never got taken care of before the current buyer’s transaction.

There could be easements on the property that may restrict the buyer’s use of the property. In addition, IRS liens, covenants and other liens from creditors or lenders may also “cloud” the title. Even a typographical error could result in problems for a prospective buyer. With the potential for all of these issues, a purchase may not be in a buyer’s best interest unless any issues can be fixed.

For many Glen Carbon buyers, real estate transactions represent the most important purchases of their lives. Title searches exist in order to help ensure that they go through without a hitch. If any problems do arise, it might be possible to rectify them prior to the closing. If not, the buyer may be able to back out of the transaction if the deal included a contingency that the title was clear prior to the purchase.

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