Title examination is one of the most crucial parts in real estate transactions. It ensures that the title to a property is merchantable or fit for sale. Title surveys look to see if there are any loads on a building. A load is something that can interfere with the sale of the property, such as unpaid tax liens or restrictions on the property. Surveys also review the history of ownership, including all trusts, will, and action in connection with the property in the past. This is called to examine the chain of title, and inspects on property ownership may be legally bound to someone other than the current buyers and sellers.
Title examination occurs when a property is under contract. Once under contract, the buyer and seller to undergo a round of talks and inspections can continue until the closing date. Anything found wrong when the property is under contract gives the buyer the opportunity to back out of the sale, or to negotiate with the seller to rectify the situation. Examining the title is perhaps the most important part of real estate closing services. Without it, the buyer would end up buying a property that legally belongs to someone else, or possibly in arrears that may eventually lead to someone else claims ownership of the property.
Title examination is usually performed by a title company or attorney. Either one of these sources often requires a title examination fee. If a loan is taken out on the property of the potential buyer, the lender may pay for the cost of title insurance, since it is also in the bank"s interest to ensure that the title is marketable. In some cases, however, the expenses of an investigation falls on the seller or the buyer, depending on the terms of the contract.
Most of the ownership history and property tax researched for a title examination is public record and may be inspected by the purchaser without the help of a third party. For legal purposes, however, a third party is almost always required and recommended. Without qualification, the buyer or the seller can not take out title insurance on the property.
A bad title is just a title that is not clear, but one that a court of equity or a court considers equitable relief would consider being marketable. That is, the court finds that there is reasonable doubt as to whether the property is free of liens and therefore the buyer is not required to complete the sales process. If the title is marketable, then the court uses its law can explain it so well, and enforce a contract of sale.
Title insurance Jacksonville, FL has in store is widespread and has steadily grown in popularity in the rest of the world. Title insurance recognizes legal to a professional third party has reviewed the title to a property and determined the market. If in the future the title proves to be defective, the buyer or seller who bought the insurance typically protected from and compensated for some or all of the resulting damage.