Title Report, Title Search and Title Insurance

Yes, we could have made a Dr. Seuss pun title from the three terms we’ll be discussing today. We didn’t, but we could have. We’re actually going one by one to learn the depth of this trio of terms and how they’re connected. It’s like the ‘what came first, the chicken or the egg…” phrase.

What is a Title Search? How do they do it? Why do I want this done?

It is a very Carmen San Diego question, but she could’ve very well been one of the prior owners of your home and a title search will help you figure that out. All joking aside, as title company searches through all documentation and public records to figure out that the person selling you a home is the owner of said place and has the legal right to sell it to you. It also tells the title company who sold it to them, in fact how the house came to each owner, ensuring the validity of those transactions. All this to get the title under your name. The items they review are located in the county appraiser’s office, public records, and court documentation. It serves to give you a clean title, free of any liens, or debts against prior ownership and leaves you with your desired property.

What is a Title Report?

A title report is the result of a title search and the process of carefully examining all documentation there-of. It’s basically a full history of a property, from owner-to-owner, the property’s legal description, which sounds like the address where the mail is sent but is not. This report also lists any liens or encumbrances which would more than likely not exist, especially on a property as perfect as the one you’re purchasing. A title report would also have all tax information listed if there are any taxes owed. That would be something the person selling you the home would have to take care of, prior to giving you the title of the property. In the title report, you also uncover any restrictions placed on the property, if you live in a historic district this could be an issue if the home is guided by restrictions in the community’s conservation.

Finally: What is Title Insurance?

Factually speaking, title companies find issues in about 25% of residential real estate deals. That means it’s not the norm to find issues that would preclude you from obtaining this form of coverage. There are two types of title insurance, an owner’s policy, and a lender’s policy. They do exactly what they say, an owner’s policy covers you as an owner against any claims that arise against your ownership of the property. The lender’s policy protects your lender against any claims that could arise and covers the lender’s interest and investment.

In laymen’s terms, the title company conducts the title search and uses it to create a title report, which means you get title insurance because you have a clean report. If you find yourself needing a title company to perform a title search and then compile a title report resulting in your title insurance give Gables Title Group a call and we’ll be more than happy to help you.