A title search is a crucial part of the home buying process. It can reveal many problems or future problems that the prospective buyer should be aware of. The closing company you choose should complete a thorough title search prior to your purchase. As a title company in Virginia Beach, TitleQuest has the knowledge and expertise to walk you through the benefits of a title search, and why you should always get one.
Benefits of a Title Search
There are many benefits to completing a title search, but the most important ones are certification of the property owner, identification of encumbrances, and discovery of restrictions or HOAs.
Certify Property Owner
When you purchase real estate you are most likely under the assumption that the seller has the right to sell the property. This is not always the case. Whether it be intentional or unintentional occasionally there are problems certifying who the property owner is. This can include a break in the chain of the title, a pending divorce in which the spouse can contest the transfer of the title, a neighbor claiming ownership of part of the property, or even issues of ownership during probate.
When you get a title search, any and all of these problems are revealed and can be resolved prior to the transfer of ownership. If they are not resolved, this gives you (as the buyer) the ability to pull out of the deal and avoid any future legal issues.
Identify Encumbrances
In addition to certifying the property owner, the title search can also reveal any encumbrances that the property may have. This can include:
- A lien on the property (creditors, tax, etc.)
- An easement on the property
- Bankruptcy or foreclosure
- Judgments against the current owner
- Existence of more than one mortgage
The encumbrances can prevent the buyer from choosing to purchase the property. Some of them can be fixed prior to the purchase, but some (such as utility easements) can cause the buyer to pull out of the deal.
Discover Restrictions or HOA
When you are looking to purchase a property, you may have specific ideas in mind of how you plan to use and change the property over time. For example, if you are planning to rent the property you would want to know if you are able to do that or if there would be something preventing you from doing it. A title search will discover restrictions set in place or HOA rules that limit what you can do to your property.
For example, some town ordinances prevent the use of a property for business. In addition, HOAs come with their own set of rules that homeowners must abide by. If you want to change the exterior of your house, a fence, or want to rent it out as a short-term rental (such as an Airbnb) there may be rules preventing you from doing so. These rules and restrictions on your property can prevent you from doing what you want and may dissuade you from purchasing the property in the first place.
Title Company in Virginia Beach
As you can see, title searches are a vital part of the real estate buying process. They can be incredibly beneficial and prevent you from going into a purchase without the proper knowledge. This can prevent you from future legal trouble. Are you looking for a title company in Virginia Beach, Chesapeake, or Hampton Roads? TitleQuest has you covered.
Our professional Titlequest team is here to help you through the exciting, yet sometimes overwhelming process of your real estate purchase. The closing company of your choosing should always perform a thorough title search, and that is exactly what TitleQuest does. We make sure to put in the time and effort to discover any problems that exist in the title.
CTA: What are you waiting for? Call us at (757) 410 – 8086 or submit a title order today!