Why Do You Need a Title Search on that Florida Property?

You may know a title search is a prerequisite in a real estate transaction, but you may not know why. There are actually excellent reasons.

The tsearch makes sure you really can make the purchase you intend to make and acquire the house title (or the title to some other piece of property) free and clear. In other words, the seller really does own it, and that the actual owner won’t appear later to dispute your claim to it. The house title search also establishes that there are no unsettled debts, liens, easements, or other issues that would subsequently interfere with your free use of the property. Or if there are, at least you know about them from the get-go and may be able to clear them up.

How Does a Florida Title Search Work?

A property title search is a somewhat complicated and technical process. You and the other parties in the sale will almost certainly be happier if you leave the task to a professional title search company.

The fact remains, however, that in theory at least, anyone can undertake the search. It’s a matter of being able to do the legwork, knowing where to look, and knowing what you’re looking for.

The home title search begins with a review of the property records at the local tax assessor’s office. These are public record. Thus there’s no question of them being available. B you’ll need a description of the property in question,however,  the lot number, and the parcel number (if available.)

The next stop is the county clerk office or courthouse. There, you’ll review titles and deeds. You find the right ones by using the information you obtained from the tax bill.

You’re looking for the owner’s name, the date of the title recording, and any outstanding liens or hindrances.

How Unreported Liens on a Florida Property Come into Play

Unreported liens are liens on the Florida home or other property the seller didn’t disclose. Unpaid water and sewer charges are examples of liens that are often unreported. They can add up to a consider amount of debt, and if you acquire the property, guess what, the debt is now yours.

What Happens After the Florida Title Search?

With luck, the search doesn’t cast any doubt on the seller’s ownership of the property or reveal any unreported liens or hindrances. Or if it does, the parties involved can resolve these matters before the sale proceeds.

The successful conclusion of the search allows for the purchase of title insurance, a form of indemnity insurance. There are actually two kinds, owner’s insurance and lender’s insurance.

Owner’s title insurance protects the buyer if any issues involving clear title to the property or undisclosed debt, unreported liens, or other hindrances subsequently arise. They probably won’t, but even a painstaking title search conducted by an expert could conceivably miss something. In such an event, owner’s title insurance protects you against any financial loss.

Lender’s title insurance protects the financial interests of the institution that gave you your mortgage in the same set of circumstances.

If you’re in need of a title search company to research a Florida property, we invite you to contact Title Search Florida. Our company has over 25 years of experience, and we stand ready to assist you.