When the big day arrives to close on your new home, you should have a title company, helping you complete the process in order to avoid possible legal or financial obstacles. A title company will manage the transfer of the title document, and the deed to the home.
Before closing day, your title company will also conduct a thorough property title search to review the home’s ownership history and ensure the current owner has the legal right to sell. This step of buying a home is crucial to confirm there will be no legal concerns when transferring the title to the new homeowners.
True Concept Title investigates the importance of a title search and how much this service generally costs. Read on to learn more.
What is a Title Search?
The purpose of a title search is to determine the rightful owner of a property. Additionally, a title search will help uncover any problems associated with the property, such as:
- Missing information
- Incorrect names on deeds
- Unpaid real estate taxes
Once a title search is complete, the items are reviewed by the homebuyer as one facet of due diligence research. Completing a title search before closing guarantees time to object to any items or ensure the resolution of any debt associated with the property.
Why is a Title Search Necessary?
Imagine a scenario where you move into your new home, get settled, begin work on renovations and other home improvements, and then out of nowhere, someone comes knocking claiming they are the rightful owner… Meaning that you have to vacate the property. Doesn’t sound like much fun, does it?
While this is uncommon and usually avoided thanks to the help of title insurance companies, it does happen. One of the main responsibilities of a title insurance company is to verify your new home’s title is “clean.”
A clean title is free from:
- Outstanding claims to ownership
- Filing errors
- Liens / judgements
In most cases, a title search will be required by a mortgage lender during the escrow process in order to borrow money from a bank for the home purchase. In order to secure title insurance, which will protect your legal claim to the title in the rare yet possible situation where a hidden problem was missed in the report, a title search must first be completed.
Even if you aren’t taking out a loan from a bank or aren’t required to conduct a title search, we highly recommend taking this step.
Learn More > What is a Title Report?
How Much Does a Title Search Cost?
The cost of a title search largely depends on the type of home being reviewed. The cost for a title search of a small, single-family home is typically a few hundred dollars, but buyers of larger properties and commercial locations can expect to pay more even up to four figures.
Like the cost, the amount of time a title search takes depends on the complexity of the property’s history. Some searches can take as little as a few hours, but others may require up to two weeks to be completed.
Pay for Protection with True Concept Title
The homebuying process can be riddled with confusing procedures and irritating, yet vital costs. While you may feel tempted to forgo a title search to save money, we strongly advise against this in order to avoid any financially and emotionally disastrous situations regarding your homeownership.
Fortunately, the small cost of a title search is well worth the great amounts of suffering that can be avoided. Both title search and title insurance are one-time closing fees, so you can gain peace of mind without having to worry about them impacting your monthly mortgage payments.
With our full escrow processing and title protection services, True Concept Title has the experience and reliability to make your home closing process hassle-free.
Have you found the perfect home and are ready to make a seamless transition to this next phase of your life? Remember you have a choice in title; call True Concept Title today – (813) 263-7168!