Understanding the Role of Title in Real Estate Transactions

Here’s What Title Does:

Establishes Ownership: Title confirms the rightful owner of the property, ensuring that the seller has the legal authority to sell it. This is essential for protecting the buyer’s investment.
Title Search: A title search is conducted to investigate the property’s history and identify any potential issues, such as liens, encumbrances, or claims against the property. This process helps ensure that the title is clear and marketable.

Title Insurance: Title insurance protects both the buyer and lender from potential losses due to defects in the title that may arise after the purchase. This insurance provides peace of mind by covering legal fees and other costs associated with resolving title issues.
Facilitates Closing: During the closing process, the title is transferred from the seller to the buyer. This involves the execution of the deed and the recording of the new ownership with the appropriate government office.
Protects Against Future Claims: A clear title protects the buyer from future claims or disputes regarding ownership, ensuring that they have full rights to the property.