A Step-by-Step Guide to Mortgage Title Search Process
A title search is a significant part of the mortgage process. It is widely required by the lenders during the end of a real estate transaction process. When a real estate buyer approaches the lender for purchasing a property, it is essential that the property should have clear titles to avoid any legal issues in the future. In such a scenario, the concept of title support services accomplishes a huge prominence.
A title search determines the rights for a real estate property and who they belong to. In simple words, the title search in mortgage process implies the search of all the title records that are largely applicable to a specific property.
The title search includes public records such as ownership, liens, and other crucial factors. It also encompasses of factors that might affect the property title such as tax, deeds and mortgage, or any kind of probate records. It is noted that title search records possess an essential role in establishing the property ownership and generate clear titles.
Let’s discuss on the set-by-step guide to the mortgage title search process!
Title Chain – The sequence in which the transfer of the title property has occurred is known as the title chain. Generally, this information can be easily availed from the numerous public records that can be obtained from the recorder’s office. The digitized data, index cards, or tract books contain all the crucial information regarding the history of property. But these searches are considered to be challenging and time-consuming. Here comes the prominence of title search, that eases the process of conducting a historical research of the property. But an incompletion of the title chain stage can cause numerous hassles in the later procedures. It could imply that the existing owner does not own a marketable title.
Tax Search – Next, comes one of the crucial phases of tax search in the execution of title search service. The tax search brings out the current status of the real estate taxes that act against the property. By investigating the record of previous years, you can easily find out the status of taxes, such as if they are paid on time or if there are overdue instances, etc. The tax search also highlights instances of any evaluation against the land (let it be in present of past). The unpaid taxes have the capability of developing a lien against the real estate property. When a buyer decides to purchase such a property, they might notice that the government would be putting the property under sale to get paid for those taxes.
Inspection – It is to be noted that an inspection of the site needs to be ordered. The person who inspects a property site should prepare an analyzed report and reveal the factors that would impact the property title search process. The person assigned with the inspection searches for the assessment evidences that might not be on-record. They will also ensure to check if presently anybody has occupied that property. If an unrecorded analysis is observed, the same gets recorded and is communicated about it to the customers. The prime objective of the inspection process is to complement the information that is derived from the title search.
Judgment Search – Any displeased judgments against the previous owner should undergo well-research and analysis. Also, one should inquire that whether these judgments existed during the previous owning of the title. A property can undergo the selling process for satisfying the judgment. The title rights that are due because of the unpaid federal taxes or judgement decrees have claims on the property. These claims would be ahead of the rights (of buyer or lender) over the property. Such judgements can form a hassle in the title which should be detected and removed on time by the property seller. This should be done before the transfer of title ownership.
Closing – Well, this is one of the last stages of the title search process. Once the defects present in the property title gets cleared through title search, the buyer, lender, and seller can move ahead with the transaction closing.
By implementing the above-mentioned guide effectively, one can make sure that the title is free from any kind of defects, therefore, making a hassle-free deal. Scanning and Indexing is one of the well-established offshore-based mortgages outsourcing company, occupying a greater proficiency to deal with the complicated title deed search process. The main intend of our title search service is to ensure that there are no problems associated with the property. To get an in-depth detail, feel free to contact us at [email protected]