It is customary, as part of any real estate transaction, to perform a title search on any property you intend to buy or sell. Without one, it is possible that you may get saddled with significant legal and financial issues that you otherwise might have avoided. But what exactly is a title search, and why is it so important that you do one?
What is a Title Search?
In simple terms, a title search is a process (typically carried out by a real estate attorney) that goes through the public records of a particular property’s ownership, confirming that the current ownership is legitimate and unburdened by any legal issues. This is intended to discover any potential defects in the property’s title, which might complicate the process of selling the property. Typically, this is done well before closing, to give both parties a chance to correct any problems that are discovered.
What Defects Might a Title Search Find?
There are a number of different title defects that a title search might uncover. These include, but are not limited to:
- Unpaid mortgages or liens
- Undisclosed easements or covenants
- Unpaid property taxes
- Outstanding legal judgments
- Erroneous public records
- Disputes over boundaries or survey data
- Fraudulent documentation
- Undisclosed heirs
What Happens if You Do Not Perform a Title Search?
Under normal circumstances, a real estate transaction can only go forward if the property has “clear title,” meaning it is unburdened by defects. If you do not perform a title search, it is entirely possible that these issues might go undetected until the sale has already closed. This could result in extensive litigation to sort out the problems caused by these defects, which could cost you an enormous amount of time and money.
What Should You Do?
If you are looking to buy or sell a home, make sure you first speak to a real estate lawyer with experience handling title searches and other similar matters. They can help you go over your case and ensure you correct any problems before the transaction goes forward. That way, you can minimize your chances of future legal issues, and enjoy the benefits of your purchase or sale.
At David J. Lorber & Associates, PLLC, we assist clients throughout New York who are looking to buy or sell real estate. We will guide you through the process and help you minimize your legal and financial risks. Call us at (631) 750-0900 or contact us online to schedule your Free consultation at our Setauket office.
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