8315 W. 10th Street, Indianapolis IN 46234. 
317-214-6023

Title Searches: A Complex View On How To Verify Property Ownership In Title Companies

March 29, 2024

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 Complex View On How To Verify Property Ownership In Title Companies

What Is The Title Search Process?

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.

Checking The Chain Of Title

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.

Verifying Encumbrances And Liens

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.

Checking With The County Recorder To Verify Property Ownership

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.

title deed with blue pen

What Is Title Insurance?

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!

Leave a Reply

Your email address will not be published.

8315 W. 10th Street
Indianapolis IN 46234
317-214-6023

    linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram