If you’ve ever purchased real estate, you’re likely familiar with a title company. Real estate transactions are lengthy and very detailed. Before you can take possession of a piece of property, you have to make sure that the seller has the legal right to sell the home.
For this reason, you’ll need to contact a title company. Title companies are highly useful. Their primary duty is to conduct an abstract on a title. In other words, they search a variety of real estate and public records within a county, town, or city and located specific information about a property. This is called a title search.
Once the title search is completed, the title company will determine who has the legal right to sell a property. Moreover, a title company can reveal liens or judgments against a property, and other property restrictions.
Title companies are extremely valuable to home buyers. If the home seller doesn’t have the legal right to sell a property, this can create future problems, wherein an unknown party challenges the title. To protect new owner from this ordeal, title companies issue title insurance.
Additionally, if a title search isn’t preformed, new owners could become responsible for unpaid taxes and liens on the property.