How Does a Title Company Figure Out That a Title is Valid?

Dated: September 15 2019

Views: 99

 BY 

When you’re buying a home for sale in Vero Beach, you’ll hire a title company to determine whether the title on the house you want is clear.

But what does a title company look at, and how do they figure out whether a title is clear?

Here’s what you need to know.

How Does a Title Company Figure Out That a Title is Valid?

A title company’s job is to make sure that a property title is legitimate. That gives you the ability to buy the property knowing that you’ll really be the owner.

The title company you hire will examine property records very carefully. They’re looking for other people or companies that claim ownership in the property – and if they find them, the title is “clouded.”

If someone else can claim ownership in the property – other than the person who’s trying to sell it to you – you cannot buy the property. That person or company owns it.

The title company will look for things like:

  • Outstanding mortgages
  • Liens
  • Judgments
  • Unpaid taxes
  • Restrictions
  • Easements
  • Leases
  • Other issues that might impact your ownership of the property

What is an Abstract of Title?

A title company won’t issue title insurance until it prepares an abstract of title. An abstract of title is a document that summarizes what the company found during the title search. It’s really a history of the property’s ownership.

With the abstract of title, the title agency will issue a title opinion letter. That’s a legal document that says whether the title is valid. 

Blog author image

Chip Boyer

Chip is the IT Manager for Alex MacWilliam Real Estate. He handles the technology needs of the company as well as helping agents in their day to day problem solving.....

Latest Blog Posts

5 Off-the-Beaten-Path Adventures Near Vero Beach

If you're buying a home for sale in Vero Beach, you'll be glad to know that there's always something to see or do nearby. In fact, check out these five quirky adventures you can go on after you're

Read More

The 5 Best Places to Catch the Sunrise in Vero Beach

If you're thinking about buying a home in Vero Beach, you probably already know that this community has tons of great places to watch the sun come up – but where are the best spots? This guide

Read More

3 Great Vero Beach Attractions Worth Checking Out

If you're thinking about moving to Vero Beach, you're not alone – this is an extremely popular area. After you get settled in, there are several fabulous attractions everyone should see. This

Read More

5 Great Places to Take Your Grandkids in Vero Beach

If you're a grandparent who's thinking about retiring in Vero Beach, part of your job is scouting out the best places to take your grandkids when they visit. We've got you covered with the five best

Read More