There is much more to real estate than just finding the perfect home or property. Ensuring you get a clear and clean title is a crucial step in this process.
A real estate title is essentially a legal document that proves your ownership of the property. The question remains, though, as to how you can make sure you get a good one.
Understanding the importance of a clear title
A clear title helps you to avoid any future legal issues or disputes over property ownership. It guarantees that the property is free from any encumbrances or claims that could threaten your rights as the owner. Without a clear title, you might find yourself facing unexpected challenges and expenses down the road.
Checking for liens and encumbrances
Before finalizing any real estate transaction, be sure to conduct a thorough check for liens and encumbrances on the property. Liens can arise due to unpaid debts or taxes, and they can pose a risk to your ownership. An encumbrance, on the other hand, refers to any legal claim on the property, such as an easement or a right of way.
Title insurance – your safety net
One effective way to protect yourself from potential title issues is by securing title insurance. This type of insurance provides coverage for any financial loss resulting from title defects or legal issues. While it may seem like an additional expense, title insurance can be a wise investment, offering peace of mind and financial security.
Data shows that there were a staggering 5.64 million real estate sales of existing homes in 2020. However, it is important to keep in mind that not all of these transactions favored the buyer. When you are looking to purchase real estate for yourself, do your due diligence in making sure you get a good title.
