Home Buying 101 in Bethalto, IL: Part 5 – Understanding Why Title is Important

Part 1: Know How Agency Affects You discussed the importance of finding a real estate agent to represent you.

Part 2: Will the Car Fit in the Garage? is about figuring out what is important now in finding your new home.

Part 3: What to Consider When Making an Offer talks about how to write an offer that is realistic and competitive. 

Part 4: I Have a Contract, Now What? covers the inspections and appraisal process.

You are almost there!  The first couple of weeks after the contract goes into effect are really busy.  Once the inspections and appraisal process are done, most buyers start to focus on packing and getting ready to move.  There are still others working behind the scenes, however, making preparations for the closing to take place.  Here are a few things about the title that you may not know:

• Title – (1) The right to or ownership of land. (2) The evidence of ownership of land.  Title is not an actual printed document.  The actual document is called the deed.  In Illinois, a deed must meet the minimum requirements in order for it to be legal.  There are several different types of deeds. 
• Title Search is an examination of public records relating to real estate to determine the current state of ownership.  This research will provide proof that the seller does in fact own the property and has the right to sell it.  Also it will determine whether anyone else has rights to the property.
• Title Insurance is a policy that protects the insured in the event that any defects in the title should come up during the course of ownership.  Unlike other insurance policies that insure against future losses, the title insurance policy provides protection from an event that occurred before the policy was issued.  A title insurance company will only issue a policy after they have reviewed the public records and determined that the title is good and there are no apparent defects in the title.
• The are also different types of title (ownership).  How title is created is very important as it will determine things such as who else has a right to the property, what happens to the property when an owner dies, and what rights a creditor may have to the property. The table below gives a brief description of the four most common types of title in Illinois.

This information is believed to be accurate at the time of this post.  I am not responsible for any changes made in these laws.   For a more thorough explanation, or if you have any questions regarding title or forms of ownership, I do recommend you speak with an attorney who specializes in matters of real estate.  In Part 6 – How Much Do I Need to Buy a House? we’ll go over the financial aspects of buying a house from the beginning of the contract to closing day.

Real advice. Real answers. It's Real Estate simplified. Helping buyers and sellers negotiate and manage their real estate transaction successfully.  

For real estate help in the Bethalto, Wood River, Alton, Godfrey areas email Stacie at stacie@mybethaltohome.com