A professional will search public records for debts, legal judgments and other homeownership issues to give you peace of mind in your investment.
Some of the items reviewed include:
- prior deeds
- divorce decrees
- court judgments
- delinquent taxes
- child support payments
A title professional will also look for covenants, conditions and restrictions and other types of easements. When an issue is discovered, the title professional will take care of it—typically without you even knowing about it. If the problem is not easily resolved, you will be notified. Title searches reveal problems on more than a third of all residential real estate transactions.
Some title issues are not apparent from a review of the public record. Title insurance provides coverage for undisclosed title defects that might later result in a claim.
Unknown events include:
- documents signed by minors or someone incompetent
- deeds executed under an expired power of attorney
- errors on the public record
This work is necessary to issue the insurance policy and often includes the cost of conducting a title search, examination, correcting errors, issuing the policy, and, frequently, the settlement or closing for consumers.
An owner’s policy protects against these additional items.