Title companies have a huge impact on the real estate business. Their responsibilities include verifying property ownership and clearing the title. Understanding the complex process of performing title searches shows how important it is to conduct thorough investigation and verification to guarantee the accuracy and integrity of property ownership.
To navigate this complex terrain, title searchers rely on various methods and tools. In this post, we'll look at how to verify property ownership and why it matters in title companies.
A title search is first performed when a title company is hired for property ownership verification. One of the primary purposes of a title search is to verify the seller's legitimacy as the property's transferor. Public records must be searched to find the property's present owner and any liens or encumbrances that can influence the title.
Title searches typically examine deeds, mortgages, and tax records. They also look for outstanding easements, liens, or limitations that might impact the title or use of the property. Moreover, the outcome of a title search can have significant implications for real estate transactions, influencing the validity of property transfers and the resolution of potential disputes.
Making sure that there is a clear chain of title is one of the most crucial steps on how to verify property ownership. A chain of titles is a history of all the owners of a piece of land, beginning when it was first purchased and continuing to the present day. The title company will check the chain of title to guarantee that there are no breakdowns and that each transfer of ownership has been recorded appropriately. Title issues may arise if there are any breaks in the chain of title or if a transfer of ownership needs to be documented appropriately.
Verification for liens and encumbrances should also be considered an essential part of the property ownership verification.
To better understand how these work, let's find out their differences:
A lien is a legal claim enforced against property to guarantee debt payment. Meanwhile, an encumbrance is a restriction or limitation imposed on the property. Some examples of these that the title company would investigate to see whether or not they impact the title include an easement, mortgage, or unpaid taxes are some examples of encumbrances or liens.
Before putting the property on the market, the title company will work with the seller to clear any unpaid liens or encumbrances.
The title company will typically verify the ownership of the property with the county recorder's office once they have finished the title search and validated the chain of title; this is the standard procedure.
The county recorder's office is responsible for documenting all real estate transactions in the county.
The title company will confirm who owns the property by reviewing the recorded paperwork, including the deed and other relevant legal documents. In addition, they will confirm that the seller is legally permitted to sell the property.
There is always the possibility that a problem with the title could be overlooked, even while conducting the most exhaustive search possible. Because of this, title insurance is necessary to safeguard the buyer's investment in the property.
Title insurance protects the policyholder against monetary damages that may be incurred due to issues with the title, such as an invalid title or liens that have yet to be identified.
The title insurance coverage will compensate the buyer for any monetary damages if a title issue arises after the sale is finalized.
Conclusion
Property ownership verification is one of the most important stages in the real estate transaction process, and title companies are essential to this process as they conduct extensive title searches and property ownership verification.
Showing the process and resources utilized helps us understand real estate transactions and the need for due diligence in protecting property rights.
Looking for a trusted title company in Indiana to help sell your home? If yes, our team at IndyLegal is here to serve you.
Call us at 317-214-6023 today so we can assist you!
Property owners need title insurance to protect their investments from unexpected financial and legal complications. Other than this, is there anything else title insurance can offer?
In this post, we'll try to answer that, explore more on the importance of title insurance, and highlight various situations where it becomes essential.
Lenders and homeowners are protected by title insurance. Some of this include encumbrances, liens, public record inaccuracies, legal conflicts, and earlier property claims. It provides peace of mind by guaranteeing that the property's ownership is unambiguous and free of any potential threats or difficulties.
Title insurance safeguards against claims or historical occurrences before the policy was issued rather than other forms. It offers protection against known and unexpected problems resulting from the property's past ownership records.
Here are the two different kinds of policies for title insurance:
The following includes common title issues and risks:
The ability of title insurance to guard against monetary loss brought on by title flaws is one of its main advantages. The following are the main benefits and safeguards of title insurance:
1. Protection Against Financial Losses
Title insurance covers financial losses due to title defects. A title insurance claim will pay your losses, including legal fees, to defend your ownership rights. This coverage may safeguard you from significant financial and legal fees.
2. Legal Expense Coverage
Title insurance protects the legal expenses associated with protecting your ownership rights. If someone challenges your ownership or files a title claim, the title insurance company will pay the legal fees. This coverage reduces the financial burden of judicial proceedings.
3. Keeping Property Ownership Clear
Title insurance guarantees clear and marketable property ownership. If a title defect threatens your ownership rights, title insurance will cover the costs of fixing it, allowing you to keep your property without spending more.
4. Protection Against Risk And Challenges
Title insurance protects against boundary disputes, unpaid liens, unreported easements, property use restrictions, and public record errors. These risks may jeopardize property ownership and lead to expensive legal disputes.
5. Property Owners' Peace of Mind
Title insurance provides property owners peace of mind that their investment is guarded. It can also provide confidence in home ownership by preventing title defects from causing stress and financial issues.
Title insurance is a crucial instrument for protecting property rights and maintaining owners' peace of mind, serving as a defense against false claims and a means of settling boundary disputes.
A previously hidden heir, a lienholder, or a fraudulent deed signing might lead to title insurance claims. It also protects your investment in each scenario.
You can learn more about title insurance here.
If you have more questions on title services and/or insurance, you may call us at 317-214-6023 so we can assist you!
The primary function of title companies is to guarantee the correct transfer of title, which is the collection of rights comprising ownership, possession, use, access, and modification of real estate.
It goes without saying that if the title is not properly conveyed, your purchase of the property could be tarnished by limitations, disagreements, and even expensive legal liabilities. For this reason, unless a full-service title company provides expert title services, no real estate transaction should be completed.
It is important to remember that the individual selling you the property is not necessarily the real owner. Even honest sellers may fail to realize that they do not have a clear and marketable title to the property they are selling, barring cases of blatant fraud.
During a title examination, every document related to a property's "chain of title"—that is, the deeds, tax records, and mortgage loan transactions connected to the property from its creation to the present—is carefully examined to make sure that nothing is incorrect or missing, such as an incorrect or missing deed, an unresolved claim, or an unpaid lien.
Clarifying the rights associated with the property, as well as any encumbrances or easements, is another benefit of a title examination. For instance, because of an easement that is documented in the public records, you could be able to enjoy the right to exclusive possession, but you might also have to provide third people permission to traverse your land.
Title Insurance Policy
You are shielded from any potential problems with the property's title with title insurance. There is still a chance that there are "hidden hazards" that even the most meticulous title investigations may miss, even if the title looks free of any problems.
If an unidentified claimant challenges your ownership of the property, your title insurance policy will pay for the defense expenses and will even refund you up to the policy's maximum amount. Plus, to purchase the property, you need to obtain a professional title insurance policy as most mortgage lenders require the borrower to do so before closing.
Looking for reliable and comprehensive title services in Indiana?
If yes, Indy Legal is here for you!
In the absence of appropriate title services, even the most perfect dream property might turn into a nightmare. Getting reliable and efficient title examination and insurance services is crucial. Because of this, Indy Legal provides the most innovative and trustworthy title solutions available. You are confident that your needs are being handled by professionals, thanks to our meticulous title inspections and expertly crafted title insurance plans.
Call us at 317-214-6023 to learn more!
In Part 1, we’ve learned that the closing process is the final stage in the real estate transaction. It is when the homebuyer receives the key to their new home and the home seller gets paid for the sale of their property.
We also talked about the typical closing period for both mortgage-financed home acquisitions and all-cash transactions. Now, we’re going to dive deeper into the closing process and the role of a title service company in a seamless home closing.
Closing on a house is frequently done in phases and on various days. Although not necessary for every party to be present, the following parties frequently are:
The settlement meeting is facilitated by the closing agent, who also ensures that all paperwork is signed, and documented and that escrow and closing costs are paid promptly.
The fees you have to pay before officially owning a home, apartment, or townhouse are known as closing costs. Closing fees should be between 2 and 5 percent of the mortgage amount. According to CoreLogic, the national average for closing expenses in 2021 was $6,905 with transfer taxes included. Washington, D.C. according to the same survey, Missouri had the lowest average closing costs at $2,061, while had the highest average closing costs at $29,888.
Depending on the purchase price of the property and the financing arrangement, closing fees might vary, but generally speaking, they consist of:
On closing day, you may have to pay additional fees for an attorney, a notary, and any county or local taxes or fees that certain jurisdictions impose on real estate transactions.
From signing the original contract to signing the closing documents, there are numerous processes involved. Many of these actions are quite obvious, such as signing off on negotiations to the terms of the contract as either side, having an inspection of your home done if you are the seller, or submitting financial paperwork to your loan officer if you are the buyer. However, a lot of these actions are less obvious but just as crucial. Many of these can be completed by a title company, including:
Disbursement Of Funds: Following completion of the transaction and signing of all paperwork, the title firm will distribute the money by the buyer, seller, and lender's instructions. This entails settling any unpaid liens or debts on the property and giving the rightful recipients of the leftover money.
Escrow Services: Title companies frequently serve as impartial intermediaries during the closing process, keeping crucial documents and earnest money deposits in escrow until all terms of the sale are satisfied. This guarantees the safe and equitable handling of money and paperwork.
Title Search: The main duty of the title business is to carry out a thorough title search by looking through public records to confirm the ownership history of the property. To make the title clear and marketable for transfer at closing, the title company searches for liens, defects, or encumbrances that may still exist.
Settling Title Issues: The title company attempts to remedy any title concerns found during the title search before closing. This can involve resolving other title problems, fixing inaccuracies in the property description, or collaborating with creditors to pay off outstanding liens. Presenting a clear title is the aim of the title business.
There are a few choices accessible when it comes to choosing a title firm for a dry closing. While some purchasers prefer to select their own title company, others prefer to go with one that is recommended by their lender. It's critical to conduct due diligence and select a respectable title company with an established track record of accomplishments.
Nonetheless, a title company plays a crucial role in the safety of your property and ease of closing, so be sure to take the time to choose one.
Looking for a reliable title service company in Indiana?
If yes, then don't look further! At IndyLegal, our goal is to help home buyers and sellers, banks and lenders, builders, developers, real estate brokers and agents, and more find the best title insurance and services.
We also offer escrow services, settlement services, and investor services.
To learn more about our offers, click this link.
For the typical buyer or seller, navigating the many legal requirements and regulations involved in property transactions can be difficult. Because of this, title companies are vital to the process, offering crucial assistance to guarantee that the sale proceeds without a hitch and is free of legal complications.
A comprehensive title search, which helps find any title problems that could cause legal problems later on, is one of the essential services offered by title companies.
Doing a title search on Indiana property is among the first things a title company will do when it becomes involved. It will examine all relevant public records to authenticate who owns the land and whether any encumbrances could affect the property's sale.
A real estate lawyer or title business will usually examine several documents during a title search, such as deeds, mortgages, tax records, court judgments, and other publicly available information about the property. By following this procedure, you can guarantee that the buyer will have a clear and marketable title to the property at closing and that the seller has the legal authority to transfer ownership to the buyer.
Following its evaluation of the title search, the title company will assess the information to ascertain whether the property's title is insurable. It will also draft a commitment that will be distributed to each party involved in the transaction.
A list of "requirements," or actions that must be completed by either party before the closing, will be included in the commitment. This timetable will include a list of steps to take care of any title-related issues that need to be fixed before closing. To make sure you are doing everything required in the lead-up to closing, it is crucial to go over the requirements again.
A list of "exceptions," or things that the title insurance policy will not cover, will also be included in the commitment. Any documents mentioned in the exceptions should be available to you through the title firm; you should analyze them to determine how they will affect your property and its future uses.
An easement on the subject land, for instance, will be mentioned as an exemption. It will always affect the property, therefore you should carefully study this document as well as any others that are included.
It is not necessary to disregard a commitment just because it has been issued and the title is insurable. For instance, if you are purchasing a home, a well-written real estate purchase contract should make it clear that your happiness with the commitment will determine whether or not you are required to carry out the deal through to closure.
A buyer can determine whether or not to move forward with the transaction by carefully going over and analyzing the commitment.
For instance, the subject property may be subject to particular restrictions, and a consideration of such constraints may indicate that the property cannot be used for the purposes intended by the buyer.
The fact that the restrictions have a detrimental effect on the buyer's use of the property is not covered by insurance because the requirements are included in the policy's exceptions. The buyer is essentially out of luck if they discover this information after closing.
Mitigating Your Risks
The assistance of a title firm is necessary to guarantee a seamless and legally compliant real estate transaction. By conducting a comprehensive title search, the company can identify any issues with the property’s title and work to resolve them before closing.
To comprehend any restrictions or exclusions mentioned, it is imperative that purchasers and sellers thoroughly read the commitment supplied by the title firm and, if needed, obtain legal counsel.
Property transactions can be executed efficiently and confidently with the proper support from a reliable title company, minimizing the risk of legal complications.
Reliable Indiana Title Service Company
Do you need expert advice on your real estate transaction? Want to know which title insurance best suits you? Need to know the documents or process involved in getting title insurance?
Whether you're asking one or all of these questions, our team at Indy Legal is here to help. Leave a comment or contact us by clicking this link.
Buying a property is an exciting and overwhelming adventure. From choosing the location to negotiating and buying the home, every process is a new challenge to face. That stays true even during the closing transaction.
It requires a plethora of paperwork, signings, and payments. Knowing what to expect when closing a home can help you learn more about the process and get ready.
The last stage of what is frequently a drawn-out real estate transaction process is closing. It might take many months to go from the signing of a purchase and sell agreement to sitting down at the closing table.
Closing is the day that buyers receive the keys and formally become the property's owner. On the other hand, closing is the day that sellers get paid for the sale.
Numerous crucial tasks need to be finished by the time of closing. The potential buyer will have obtained the mortgage required to buy the house unless they are paying cash. There will have been an evaluation of the house and a condition inspection by an impartial third party. All further conversations regarding expenses, repairs, and fittings will have been resolved to a satisfactory degree. The purchaser is going to do a last inspection of the property. Usually, the vendor has left after packing.
The buyer of the property must sign a ton of documents on closing day to complete the transaction. On closing day, several additional parties are frequently present, such as the seller, the lender, real estate agents, the closing agent, and frequently an attorney who will also be reviewing the documents being signed.
There can be a range of times between putting in an offer and finalizing the deal. The typical closing period for mortgage-financed home acquisitions is 47 days, as reported by mortgage consulting and technology platform ICE Mortgage Technologies. Closings, however, can happen as quickly as thirty days, particularly in all-cash transactions.
The process of closing on a home is difficult. What you should do to prepare is as follows:
Consult A Real Estate Lawyer
Purchasing a home involves more than just the buyer and seller doing business. It's also a somewhat intricate legal procedure. You might find it helpful to work with a real estate lawyer to guide you through the process and make sure everything closes without a hitch. Generally optional, however having legal representation can help you steer clear of unforeseen problems later on.
Create An Escrow Account
At the beginning of the closing process, the majority of homebuyers open an escrow account, which is normally handled by a title company. This account contains all the cash related to the sale, including an earnest money deposit, before you formally close on the property. After closing, the mortgage provider transfers the monies to the buyer and seller, respectively, guaranteeing a safe and secure transaction.
Do A Title Search
Early in the closing process, do a title search on the property you are buying. Any problems or claims against the house, including unpaid property taxes or liens placed on it by contractors, will be revealed by a title search and might potentially threaten your ability to legally buy and occupy the property. During this time, you should also consider purchasing title insurance, which would pay for any title disputes that arise while you are the owner.
Get A Home Inspection
One of the most crucial aspects of closing is getting a house inspected. There may be hidden problems in even the most exquisite homes.
A contractor or qualified inspector will look for significant problems such as leaks, cracks in the foundation, faults with the plumbing or electrical system, and possible safety risks during a house inspection. You may choose to back out of the agreement based on the inspection's findings, or you may request that the seller remedy the problems as a condition of the sale.
Negotiate On Your Closing Costs
Certain charges are negotiable even if closing costs can be high. Check to see if your lender may waive the application fee or reduce the origination fee. Ask your mortgage company whether you can shop around for the cheapest rate instead of paying a set charge to the insurance company of their choice if you need a lender's title insurance.
Confirm Your Closing Date
Verifying the date of your closure is the next step. On this date, the seller will vacate the property completely and you will have the opportunity to move in. Remember that the closing date comes at least one month following the acceptance of the purchase offer. If you encounter unforeseen obstacles when shutting, it may take much longer. You can begin packing your belongings and contacting moving companies as soon as you have the closing date confirmed.
Do A Final Walkthrough
Doing a last walk-through just before moving into a new home is a good idea, even if your initial home inspection went well. There's always a chance that damage happened in the interim between the initial inspection and the day of your move-in. Make sure the seller repaired everything that needed to be fixed and cleared the house and property of everything that wasn't covered by the purchase and selling agreement at the last walk-through.
Understand Your Closing Documents
You will receive many crucial paperwork at the closing. Ask your real estate lawyer or Realtor to go over each document's purpose as there may be up to 100 pages in it. Some of the documents you might anticipate receiving are as follows:
Loan estimate: Key details about your loan, including terms, interest rate, and closing fees, are included in this document. Verify that everything is accurate, including how your name is spelled.
Closing disclosure: This document provides information about your mortgage, just like the loan estimate. This form should be sent to you at least three days before the closure. You have the opportunity to compare the information on the loan estimate and the closing disclosure within this window of time.
Initial escrow statement: Any payments made from your escrow account by the lender during the first year of your mortgage are included on this form. Insurance and taxes are included in these costs.
Mortgage note: This paperwork formally commits you to paying back the mortgage. It outlines the loan's conditions and amount as well as what will happen if you don't make your installments.
Mortgage or deed of trust: If you default on the mortgage note, this instrument secures the note and grants your lender a claim against the house.
Certificate of occupancy: This legal document is required for you to move into a freshly built home. Additionally, get a copy of the survey and title policy.
The two main things you will need to accomplish on closing day are signing legal paperwork and paying escrow items and closing expenses. The documents you will sign will cover the terms and conditions of your mortgage from your lender as well as the agreement between you and the seller, who is transferring ownership of the home. To ensure you understand exactly what you're committing to, it's crucial that you thoroughly read each of these contracts.
On closing day, you will also need to pay for all escrow goods and closing charges. Getting a mortgage and changing ownership of real estate comes with several costs. These costs consist of HOA dues, utility bills, and property taxes. Typically, the money is sent to the escrow business via wire transfer certified check, or cashier's check made payable to the bank. Personal checks are frequently prohibited.
It's also crucial to find out what kind of identification is needed before closing day. Though some businesses demand two, typically just one form of ID is required. Usually, you have to bring the following items:
Closing delays can be caused by a variety of factors, such as inadequate appraisal, unfulfilled conditions, title issues, and issues with the mortgage money.
Low Appraisal
An appraisal is a professional evaluation, mandated by the mortgage lender, of the value of the house you are considering purchasing. Ensuring the home's sale price is in line with its fair market worth is the aim of an appraisal. If the home appraises for less than the purchase price and/or the amount you are trying to borrow, this step could affect the closing process. The maximum amount the lender will lend you is the appraised value. Therefore, your agreement can collapse if you lack the funds to close the assessment gap.
Failing To Secure Financing
Closing may be slowed down or the loan may be canceled completely if you are unable to obtain a mortgage due to a change in your circumstances, nonpayment of the loan, or other delays.
Unfulfilled Contingencies
In a real estate contract, contingencies give either party the option to withdraw from the agreement if specific requirements are not fulfilled. This could be the result of a home inspection that finds significant issues, the purchase is conditional on the buyer obtaining financing (see above), or the seller buying a new residence. These and other contingency-related issues could stop the deal or make it completely collapse.
Issues With Title
Any real estate transaction requiring a closing needs to have a clear title, meaning there should be no questions or claims regarding ownership. This implies that the closure cannot take place until any form of lien or claim against the property is resolved. If a seller owes unpaid income or property taxes, the Internal Revenue Service or the state government may lay liens on the property.
These are some of the basic things you need to know when closing a home. In Part 2, we’ll dive deeper into the closing transaction and talk about the importance of a title service company.
Leading your customers through their sale or purchase and ensuring that you and your clients are prepared for closing is a process that real estate agents go through, whether they are handling ten transactions at once or just one.
Additionally, you must have everything organized because your consumers want a seamless and joyous day.
To assist you in avoiding issues and mistakes, we've compiled a list of some of the most important considerations to make as you near the completion of your transactions and throughout the process.
Now, these steps might sound easier than they truly are but don't worry, as long as you have the right title company working with you, you can make the closing transaction smooth and seamless.
Need a reliable title company in Indiana? If yes, IndyLegal is here to assist you.We've worked with various real estate agents and brokers in Indiana, and we take pride in providing a top-tier service for all our clients. Learn about our services by checking our website or calling us at 317-214-6023 today!
Acquiring a house is a thrilling and noteworthy achievement; but, it also requires working through an intricate network of procedures and choices.
Title insurance is an essential component of this process that can provide you peace of mind in your new home and preserve your property rights. There are misunderstandings regarding title insurance, just as with any significant purchase, which makes it difficult to determine its actual worth.
In this post, we'll dive deeper into the most common myths from reality today so you can understand title insurance better.
Truth: Even with a title search, something might be overlooked about the property's past, such as unreported problems. Title insurance protects you against unanticipated claims or disputes that may arise in the future and covers historical events that occurred before the policy's issuance.
Truth: Owner's title insurance is just as crucial, even though lenders do need their own specific kind of insurance to safeguard their investment. Paying for court costs and possible losses if a title problem arises, protects your investment in the property.
Truth: At the time of purchase or refinancing, a one-time charge is paid for title insurance. Its cost is negligible in comparison to the security it offers, especially when one considers the possible financial fallout from title disputes.
To put things in perspective, owner's title insurance normally only costs between 0.5% and 1% of the price you paid for your house. You can avoid suffering a large financial loss in the future by getting title insurance.
Truth: Early on in the home-buying process, title insurance should be taken into account. It is an essential part of your transaction, and having it ready will facilitate the process for you. Your transaction may be delayed if you wait until the last minute.
Truth: While conducting your own research is doable, comprehensive title searches require skill and access to specialist databases. Professional title companies, like IndyLegal, have the resources and knowledge to identify any difficulties that you may overlook.
Truth: Claims for title insurance do occur, and they can have very negative financial effects. When these unforeseen circumstances occur, title insurance offers crucial protection, whether it be from an undetected lien or an unidentified successor claiming possession.
Title insurance is an important aspect of every real estate transaction. By analyzing common myths, we hope to create a better understanding of the importance of title insurance.
When purchasing a home, preserving your ownership rights and financial security with title insurance is a wise and sensible decision. Making informed decisions to protect your investment will ensure a smooth path to homeownership for you, and we will be there to help you every step of the way!
If you need help on title insurance or search or have more questions on related matters, we're one call away! Dial 317-214-6023 so we can assist you!
Title companies, like many other businesses, faced significant challenges during the COVID-19 pandemic. The nature of their operations, which often involves in-person interactions, document signings, and thorough property research, required swift adaptation to ensure business continuity and the safety of their employees and clients.
Let's explore a case study highlighting how a hypothetical title company demonstrated resilience during the pandemic:
In summary, the hypothetical title company showcased resilience during the pandemic by swiftly adapting to remote work, embracing digital technologies, enhancing communication with clients, implementing safety measures for in-person interactions, prioritizing employee well-being, and staying abreast of regulatory changes.
These measures not only ensured business continuity but also positioned the company for continued success in a post-pandemic landscape.
When buying a home, it's wise to conduct a property title search, which might reveal any financial or legal entanglements associated with the property. If you're financing the purchase, it's usually mandatory. This is because, in real estate transactions, liens on a house or other unresolved title issues must be addressed, protecting both buyers and their lenders.
If you want a deeper understanding of what it's about, you can check the following resources:
Nonetheless, here are some basic things you need to know about title search.
A title search looks up public records to trace the ownership of a piece of real estate, identifying the buyers and sellers over the property's lifetime. Some of its objectives are:
The main purpose of property title search is to ensure that a property is free of liens, which are legal claims made against it due to unpaid bills, unpaid taxes, or other financial responsibilities.
This is why mortgage lenders typically demand them. The revenues from the sale of a property must be utilized to settle any legitimate liens. In a real estate transaction, the seller usually bears the responsibility but as the new owner, you may also become the beneficiary of any lien that is tied to the property and isn't evident at the time of sale.
In another sense, the true cost of the house to you might be the purchase price plus the total amount of any liens you inadvertently take on. Such a surprise is avoided with a property title search.
While fraud and forgery are undoubtedly possible, most title flaws discovered by property title searches are the result of harmless errors. Due to the mistakes made by courts or municipal clerks or the lienholder neglecting to notify the debt's discharge, some liens continue to exist even after the original financial obligation has been satisfied.
Although they are frequently easily resolved, they must be addressed before the lenders give the final loan approval.
Some cases that become more problematic are when a seller who inherited a home is not aware of a lien placed one or more generations ago and needs repayment during the selling process.
A comprehensive property title search can uncover any liens that may be attached to a property through the dozens of legal procedures available. The following are a few of the most typical lien kinds that may appear:
Mechanic's Lien: If your home is undergoing significant construction, it is customary for the contractor to file a mechanic's lien, which establishes a claim on the property to protect them from unpaid labor and material charges. The contractor should get the lien released once you pay for the work, but that doesn't always happen. Mechanic's liens also usually have built-in expiration dates, but selling the home before the date can hinder the sale.
Tax Lien: Homes whose owners neglect to pay their property taxes may be subject to liens from municipalities and other taxing authorities, including school, fire, sewage, and water agencies.
Overdue Homeowner Dues: If a homeowners association governs a house or condominium, the association may place a lien on the property to recoup past-due assessments or other costs. Usually, these need to be resolved during the selling process.
Spousal Or Child Support Lien: Court-ordered spousal or child support may be the subject of a lien placed against the noncompliant parent if the parent is unable to pay the required amount.
Civil Judgment: This happens when parties that win compensatory or punitive damages in civil litigation may bring claims against the other party's real estate and other assets.
Your lender will probably need you to commission a property title search from an abstractor -- a professional service provider whose price is usually included in your closing costs if you're financing a home with a mortgage.
It may be advisable to leave the work to the professionals because title search fees (which usually range from $75 to $200, depending on the prevailing rate for your area and the complexity of the required search) are not very expensive when you take into account the cost of a home and the possible expense of undiscovered title flaws.
However, anyone can perform a property title search because they are based on public records. This is the method to follow:
A property title search is necessary because title defects might cause delays or failures in acquiring your real estate or leave you with a home that has unresolved legal claims against it.
Doing it might be daunting, but still, other than being required by the mortgage lender, a title search can add the peace of mind you need in case of a problem with your property.
If you need reliable title services, such as title search for your property, our team at IndyLegal is here to help!
Call us at 317-214-6023 to get started.
