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The Importance of a Title Search When Closing a Residential Real Estate Deal

By
Real Estate Agent with Team Realty and Investment Solutions

In South Florida, most closings do not happen as fast as they should due to contractual disagreements that arise between the seller and buyer. A clear title is important for any real estate buyer, and because most real estate agents and title companies focus more on closing the deal more than the title work, taking sometime to confirm deals before signing can be a huge headache reliever. It doesn’t hurt to be sure the seller is legally transferring legal and full ownership to you as the buyer.

 

A search should be performed to check for any “cloud on the title” claims against the property. This confirms that the seller is indeed the owner of the residential real estate property and if there are any liens on contractors or service providers who did improvements on the home and were not paid for their services.  If there are any pending mortgages that may cause the lack of a clear title, the seller should get all issues resolved before the last contract is signed and a clear title handed over to the new buyer.

 

There are certain counties were title searches are the responsibility of the closing agent. The closing agent in this case has access to information on the ownership of the property and everything else therein, with experience in investigating real estate records. Whether its a lender or buyer interested in the home, if the title is not clear, the sale will more than likely not go through. Real estate lawyers can also represent a buyer during the closing of the transaction, and they do not charge over and above the amount the title that the company is receiving to do thorough investigations.

 

If the buyer of a residential real estate property is using a lender for financing, the lender often mandates that the title insurance policy have their name as the policyholder before they agree to fund the loan. A title search is an important part for any residential real estate deal. It’s what determines how fast a deal is closed between a buyer and seller and allows for mortgage lenders to confidently lend money to new property owners.

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