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What You Need To Know About Property Titles

What You Need To Know About Property Titles

Property Titles

When buying a home, handling the property titles is one of the steps prior to closing. A title is the legal document that includes all the information about the property as well as who owns it. Before closing, a “title search” is done to make sure everything is clear and ready to go before the purchase. Here is a quick guide on what you need to know about property titles.

Buying The Title Insurance

Purchasing title insurance will be one of the first steps to closing on the house. There are two types of insurance policy. The first is owner’s title insurance, used to protect the buyer. The second is lender’s title insurance to protect the lender. Essentially, the owner’s insurance acts as protection if an issue arises after the title search is completed.

Prior Claims

Next, a title investigator will look for any prior claims that could affect the purchase. As often as one in every three searches uncover some last minute issue that needs resolving. These issues include things such as prior taxes not being paid, contract work that still needs payment, mistakes in the deeds, and more.

Resolving Issues

Sometimes the owner of the property shares the ownership with another party. In this case, all owners must sign the documents for the sale to proceed. Moreover, all judgements and taxes must be paid prior to the sale as well. These responsibilities fall on the shoulders of the sellers involved.

Protecting Your Title

After the sale has gone through, it is crucial to protect your title. We recommend keeping it in a safe place. Check with your bank to place it in a deposit box for maximum protection. 

Selling Title

If you sell your home, the title is transferred to the new owner’s as well. They will receive a copy of the title within several weeks after closing. 

Losing Title

Luckily, losing the title is resolvable. The county courthouse of the property will be able to replace it if you request a copy. Additionally, your mortgage banker should be able to get a copy for you if need be.

Your Michigan Neighbors Are Our Clients

Who doesn’t want a smooth, worry-free closing? Venture Title Agency is here to help. We make sure your title is handled professionally, smoothly, and efficiently. We’re a title agency you can trust, right here in your neighborhood. Ready to schedule your closing? Contact us today!