#21 When the Title Search Finds Trouble!




It’s helpful to remember that the primary purpose (and goal) of your Title Company is discovery!   Learning the complete path and the exact “condition” of the Title, to the property you are in the process of purchasing, is critical.   The responsibility to discover the facts, history and status of the property in question lies solely in the Title search process.

When you began your home purchase adventure, your Loan officer outlined the entire process so you would know exactly what to expect.  Since you have made an offer that has been accepted by the Seller, the Title search is next.  

It is both reasonable and optimistic to expect that all is well with the “health” of your selected property’s Title.   However, until the Title Company’s work is done, the actual facts are not entirely known.   In fact, there are a number of negative possibilities that might be discovered and that may need investigation and solutions .

A typical discovery involves possible liens that may be held against the property.   There are many kinds of liens – personal, tax, mechanic’s – to name a few.   A personal lien might involve domestic issues such as an unpaid legal obligation or non payment of child support.  If there is a tax  lien on the property, it could be paid as part of the purchase transaction stipulations.  A mechanic’s lien usually involves issues between a contractor and the present owners and the home structure itself.

Sometimes, the Title Company discovers that the “chain of Title,” that is, previous transfers of ownership, contain entanglements that were not addressed and resolved in the previous transfers.  That reveals that the Title is “dirty,” and will need to be cleaned up before it is again transferred to you, the newest prospective buyer.

Other matters may turn up as the Title Company does their important work – that of making sure the property you want to purchase is clear, in good legal health with any unwanted, unpermitted encumbrances.  The Title Company might show that there are access or easements in common with adjacent property or properties.

These, and many other elements of the property in question, will come under scrutiny by your Title Company.  Obviously, some are more important than others.  Some, unfortunately, might even be “deal breakers.”   

The upside of that circumstance (should it arise) is that you definitely want a “clean” property; and, your home loan Officer requires it!   After all the groundwork and preparation you have diligently completed with your Lender, the last thing you want is circumstances that may seriously complicate, delay or vacate the purchase process you have so far successfully completed. 

What you want even less, are serious complications, after your purchase that were somehow missed in your Title search!   This is where you would be wise to exercise patience in the Title search process, and trust in the continuing integrity of your Loan Officer and other trusted professionals who have brought you to this point.

What happens when the Title Search finds trouble?   The
Professionals working on your Title search recognize irregularities, track and identify them accurately, then, assess remedies and apply solutions.   Their end goal is to hand you a clean Title with which to move forward!


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