Nothing can ruin the dream of a new home faster than finding out the title to your real estate is compromised in some way. Title searches should never be skipped, and title insurance is a good bet for nearly everyone. Talk to an El Paso, TX real estate lawyer right away to learn more.
From an El Paso, TX Real Estate Lawyer: What to Know About Title Searches and Insurance
What’s a “Title Search?”
A search on a title means going through all the public records to make sure that you know exactly who has legal ownership of a property and to discover if there are any liens or encumbrances on the property that could make a difference if it’s sold or transferred. It’s important that you be able to establish a history of ownership on the property. That history should go very clearly from one owner to the next and be the same on all deeds, mortgages, tax records, and public records. This is also valuable for making sure that all property taxes have been paid, as well.
What’s “Title Insurance?”
Unfortunately, even a very thorough title search might miss something. There could be a claim that hasn’t been recorded, a clerical error, or you may be the victim of fraud. Title insurance protects the buyer from any issues that might arise from the title after closing. Texas law does not require title insurance, though the Texas Department of Insurance (TDI) does set standardized rates for this insurance based on property value. However, many mortgage lenders require title insurance.
How It All Works
You as an individual can do a title search, of course, but it’s usually not a good idea. Unless you know a lot about real estate law and know all the places to look, you could easily miss something important. It’s best to talk with a real estate lawyer who can not only do a proper title search but also give you guidance on all the laws and help you to resolve any disputes you might uncover.
Avoiding Surprises After Closing
If you don’t do a title search, you might be shocked at what could pop up after you close. An unresolved issue regarding heirship could mean you lose the property entirely. You might find that there are ruinous debts or tax burdens attached to that property, which would become your responsibility once you own it. Talk with your lawyer to make sure everything is uncovered in your search, including:
- The chain of the title and each transfer of ownership
- Any unpaid mortgages
- Tax claims
- HOA liens
- Court-ordered debt judgments against an older owner
- Restrictions on the property (such as limits to what you can build)
- Easement issues
The best way to protect your property is to talk with a real estate lawyer. A lawyer will give you peace of mind and help you resolve any issues that may come up. Talk to us today at the Law Office of Albert Nabhan, PLLC in El Paso and Odessa, TX to get help with your real estate transactions.
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