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

Dated: September 15 2019

Views: 62

 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

Are You Really Ready to Buy a House? 3 Practical Signs That You Are

You’ve graduated from university, landed a good-paying job, your credit score is nothing to shake a stick at, and you even know your debt-to-income ratio—it’s actually good. You

Read More

3 MORE Dangerous Flowering Weeds to Look Out For

A lot of times it’s easy to spot weeds in your yard. Some have imposing jagged-edged leaves, or furry foliage. Others have thorny stems. Many times they stand out simply because they tower

Read More

3 of the Most Dangerous Flowering Weeds. Could They Be in Your Yard?

Weeds tend to stand out. Sometimes they have off-putting hairy leaves. Sometimes they have thorns. Sometimes they have both. Most times, though, they’re just plain ugly. But sometimes weeds

Read More

3 Things Homebuyers Are Looking for Right Now

Homebuyers want luxury in today’s homes, and a residence that provides creature comforts and convenience. A place that makes them feel pampered. Before you put your home on the market,

Read More