The title examination is a critical component in every real estate transaction. During the examination process, public records related to a property are located and inspected by specially trained title examiners. Documents typically included in the title examination process will include all types of recorded property deeds, including quitclaim, warranty, bargain and sale, deed of trust, and mortgage deeds. Additionally, any existing wills, liens, judgments, surveys, plats, and other documents that can affect the title status of the property are examined for accuracy.
If you are having a title examination performed for the purpose of buying or selling a property or for informational purposes, this information will help you understand the potential benefits.
Verification of the Property's Legal Description
Each property has a unique legal description that allows it to be identified and located. Created by a licensed land surveyor, a legal description is included in all legal documents related to the property. When changes are made to the property, including the selling or buying of all or a portion of the property or the transfer of the property ownership through a will or trust, the legal description is examined and updated, as needed to ensure it continues to offer verified, factual information. While the legal description on all legal documents should be the same, most title examiners consider the one found on the most current deed to be the correct version.
Problems With Past Property Transactions
Title examinations provide an important opportunity to ensure that any erroneous information regarding the property is found and corrected. Some common title issues that may be found during a title examination process include misspelled or incorrect names and dates, missing or previously unknown heirs, and mistakes in transferring property ownership after a divorce or death. Title examinations can also help to uncover forged documents or existing encumbrances and easements that were previously unknown or unrecorded.
Determining the Potential or Existing Boundary Disputes
Because a title examination process will include verification of some surrounding property information, it can be helpful in determining if a potential boundary issue exists. When boundary lines are in question, the title examination process can be used to help prove ownership when the title is determined to be "clouded" and when legal action is needed to resolve the matter, or "quiet" the title issue.
In addition to providing valuable information about a property, the title examination process enables the property to be covered by a title insurance policy that offers financial protection to an owner or lender should a later issue arise regarding legal ownership. To learn more about this important process, contact a company like The Title Doctors Inc. for more information.