Buying a house is one of the most significant lifetime investments most people make, and attention to detail is crucial to avoid problems. During the real estate closing process, a title search is done on the property to determine if title defects exist that could affect your purchase. Unfortunately, one of the buyers’ most common title issues during a title search is an error in public records. Learn more about public record errors and how they can negatively impact your home’s title.
Most people assume public records are one hundred percent accurate, but humans are error-prone, and one mistake could affect your deed and generate unexpected expenses. For example, an error in typing or filing the deed could cause unforeseen problems during a property transfer. Because mistakes are inevitable, contacting an expert such as SunnysideTitle company to perform a title search is critical to ensure the property’s title is clear and error-free.
What Happens During the Title Search?
During a title search, the recorder or registrar of deeds, clerk of the court, and county and municipal officials examine the property documents. This past documentation may include taxes, judgments, liens, assessments, and other information that could affect the title. A title search reveals errors in the process, so essential revisions are completed to clear the title and enable a property transfer.
Possible Public Record Errors
Various errors may cause title issues that require clearing before the sale and purchase of a property. For example, a property description may appear accurate, but the home’s square footage could be inaccurate. Since lenders consider square footage in determining a home’s value, and anything less than what is listed on the deed could mean the buyer has an issue getting the requested loan amount. As a result, the buyer might be unable to get a mortgage and be prevented from buying the property.
Mishandled Public Records
Another possibility that arises during a title search is improperly filed legal documents. Other problematic situations include unreleased mortgages or pending legal actions. All of these issues can result in significant problems for homeowners if left unresolved. A title search reveals mishandled public records to make necessary updates so the title is clear and ready for transfer.
Avoiding Errors in Public Records
While avoiding errors in public records would resolve these issues, past processes were subject to inevitable human error. Any past mistake in recording and filing a deed could compromise property ownership. An owner’s title insurance policy helps protect your ownership from errors in public records. This insurance may cover legal costs and certain losses due to a title defect. As a result, investing in owner’s title insurance protects your investment and ensures you have a clean title.
Owner’s Title Insurance Offers Protection
Owner’s title insurance is different from a homeowner’s or lender’s title insurance policy. An owner’s title insurance policy protects the buyer from title defects that could become costly in the future. For a one-time fee, owner’s title insurance gives buyers peace of mind about home ownership.
While everyone would appreciate eliminating errors in public records, it’s an impossible feat. As a result, buyers must protect themselves by investing in an owner’s title insurance policy to protect them from errors and defects that could prove to be costly in the future.