Understanding Title Examination: What Does a Title Examiner Do?
Crossland Title Tennessee

Understanding Title Examination: What Does a Title Examiner Do?

Understanding Title Examination: What Does a Title Examiner Do?

When purchasing real estate, one crucial step is the title examination, which ensures the property’s title is clean and clear of any potential issues. Here’s an in-depth look at what title examination entails and why it’s vital in real estate transactions.

What Is Title Examination?

Title examination involves a meticulous review of all public records that affect the title to the real estate you are purchasing. This process involves digging through past deeds, wills, trusts, and other legal documents to ensure that the title has been correctly transferred to each new owner. The goal is to verify that all previous mortgages, judgments, and liens have been fully satisfied and cleared.

The Importance of Title Examination

Avoiding Defective Title

A defective title means the title to the real property is invalid due to issues such as an incorrect description of the property or problems with the previous holder’s claim to the title. A title examination helps identify any potential defects, ensuring that the purchaser can avoid these pitfalls. A defective title can lead to significant legal and financial complications, making thorough research essential.

Ensuring a Clear Chain of Title

The chain of title is a comprehensive history of the property’s ownership from the present owner back to the original owner. Title documents are recorded and maintained by a registry office or civil law notary. The chain of title includes records of deeds, estate distributions, death certificates, foreclosures, judgments of quiet title, and other transfers of title. By reviewing the chain of title, title examiners work to ensure that you gain a clear title without any outstanding claims or “clouds” over it.

The Role of Title Companies and Abstractors

Before purchasing property, it is common practice for purchasers to hire title companies or abstractors to perform the title examination. These professionals search the chain of title and provide a comprehensive report, ensuring that the purchaser has clear and undisputed ownership of the property. These reports are crucial for obtaining title insurance, which provides added protection against any future claims on the title.

Title Insurance Based on Title Examination

In many real estate transactions, title insurance is issued based on the chain of title identified during the examination process. Title insurance offers financial protection against losses due to title defects, ensuring peace of mind for property owners.

Have Questions About Title Insurance?

Do you have more questions about title examination or title insurance? Crossland Title Inc. is here to help you navigate every step of your real estate transaction. Our team of experts is dedicated to providing thorough research and unparalleled support to secure your property’s legal standing. Contact us today for more information!