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The following are frequently asked questions pertaining to real estate transfers and the need for a title search or title examination. If you have any questions about real estate that you are about to purchase, please contact us.
DOESN'T YOUR DEED TAKE CARE OF GIVING YOU CLEAR TITLE?
Not at all. A "deed" is merely an instrument whereby a seller transfers his or her right of ownership, whatever it may be, to you. It is not proof that the person described as the seller is actually the owner. It does not do away with claims or rights others may have in the property. From the deed, you cannot determine what rights, liens or claims may be outstanding against your title.
IS THE RECORD OF OWNERSHIP OF THE LAND COMPLETE FROM PRIOR OWNERS TO THE PRESENT?
You will probably buy property that has had a number of different owners over the years. The continuous record prior transactions is called the "Chain of Title," and like any other chain, it is no stronger than its weakest link. Anything wrong with the title of the previous owner may very well affect your title too.
ARE THERE ANY LAWSUITS OR CLAIMS RECORDED AGAINST THE PROPERTY ITSELF?
If the former owner had a new sink installed and failed to pay the bill, the plumber may file a Mechanic's Lien claim. This stands as a claim on the property which you, as the new owner, may have to pay in order to clear your title. Similarly, there may be suits pending affecting the property, foreclosures or bankruptcy actions, or any number of claims or legal involvements which may cloud the title until they are properly settled or removed.
ARE THERE ANY SUITS OR JUDGMENTS FILED AGAINST THE OWNER OF THE PROPERTY?
If a person is sued and a judgment is rendered against that person, any real estate he or she owns may become security for the debt. This means that he or she cannot sell that real estate and deliver a clear title until the judgment is paid, released or otherwise satisfactorily disposed of. Further, other suits filed against the owner of real estate - even though not yet decided - may prevent the sale of the property.
ARE ALL TAXES AND SPECIAL ASSESSMENTS PAID?
Unpaid real estate taxes are a first lien on any real property. If there has been a tax sale or forfeiture or any other objection or protest, it means that there are complications standing in the way of a clear title.
DOES ANYONE HAVE SPECIAL RIGHTS TO THE PROPERTY THAT WOULD LIMIT OWNERSHIP?
Many such things are possible - the right-of-way for a road or power line, an easement for a driveway, air rights, sub-surface rights - any of which may have been sold or granted to someone else by a former owner. If so, there may be restrictions on your use of the land.