Why Should I Search for Liens on a Property?

A new home is a big financial investment. Hence, it’s only natural that you would want to do everything in your power to ensure a seamless and scam-free transaction.

A lien search on a property saves you the stress of an unknown heir or an angry mortgage lender knocking on your door ten years down the line. Further, you will not have to spend on legal fees defending your ownership in a lawsuit or reimbursing any party for a financial expense that isn’t your fault.

A title search helps secure your bundle of rights as a new owner. These include:

Right of Control: The owner can use the property as they wish, if it falls within the confines of the law and the local homeowner’s association.
Right of Possession: If the house is bought with a cash offer or the mortgage is paid in full, the owner is then the legal possessor of the property. However, if the mortgage isn’t paid off yet, then the ownership is divided between the lender and the buyer. If the latter defaults on their loan, the lender can choose to foreclose the home.
Right of Exclusion: The property owner can choose who can enter their property.
Right of Disposition: The owner can transfer the property title to another individual. This is only possible if they are the sole owner of the property, without an active loan.

Title searches are also important for sellers. It provides them with a marketable title, thereby making their listing more attractive to prospective homebuyers. Further, should they provide a warranty of title to the buyer, they will not be held liable if any unknown title defect does emerge in the future.

How Long Does a Title Search Take?

An abstractor needs to examine documents from different sources like courts, banks, mortgage lenders, etc. Since they each function according to their own schedule, there is no definite time period for a title search. Typically, they take around 3 to 10 days.

The time needed for a title search on a property also depends on how old the house is. If it had been built decades earlier, then it would have had multiple owners, increasing the number of documents that must be verified. On the other hand, newer properties will have fewer documents that need to be reviewed, speeding up the process.

Who Does a Home Title Search?

Generally, a title check is required by a lender if the house is bought either via a mortgage or a loan. Carried out by a title company or an attorney representing the buyer, this evaluation helps protect the new owner’s investment. In certain instances, the lender may choose to do the property title search themselves.

Sometimes, the buyer may choose to carry out the title examination on their own. You can do so by:

Obtaining the legal description of the property you intend to purchase.
Submit the description to the county’s Office of the Examiner of Ti