Legal Ease by
Shane Givens
Dec. 28, 2010
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Do I need a title search? A large part of my business – the current housing market notwithstanding – deals with real estate transactions such as property closings. From time to time, I get the question, “Do I really need a title search?” This question, unlike many legal questions, is easily answered: Yes. Every time. A title search is the process that allows someone who is purchasing land or a house to be certain the property they are buying has a “clear title.” Basically, securing a clear title means that buyers don't have to worry about being involved in a lawsuit regarding the property after the purchase. Several areas are checked when a title search is performed. The person reviewing the title, the title “abstractor,” not only checks to make sure the seller has sole ownership, but also checks to see if liens are filed against the seller or the property. They will also determine if the property has valid, legal access to a public road, if the property taxes have been paid, etc. Whenever a buyer tells me they don't want a title search, the buyer usually believes he knows enough about the property to trust that the seller is the sole owner. In other words, the buyer knows the seller, and knows that the seller or his family have owned the property for several years. However, the only true way to know that the buyer owns the property or shares a legal interest is to via a title search. In fact, when someone tells me a piece of property has been in the same family for years, I specifically urge them to get a title search. Property that has been “in the family” is usually passed down from generation to generation. This is a recipe for title trouble, especially if the previous owner did not have a will, or if the will was not probated properly. When I question a seller in these types of situations and am told that “everybody knew Daddy wanted the house to go to Sissy,” a chill runs down my spine. Additionally, sometimes owners have liens filed against them that they aren't aware of. State and/or federal tax liens, unpaid property tax liens, old judgments, misfiled judgments – all can be attached to the property without a seller's or buyer's knowledge. If a seller transfers the property with these types of liens, they travel with the property. What's worse, if the lien holder later decides to execute on the property, it could be sold to satisfy the lien. For all these reasons, it is always wise to get a title search on any property you intend to buy. This column is intended for general information purposes only. The answers to most legal problems rely on specific facts of a particular situation; therefore, it is very important to see a lawyer when these situations arise. Please e-mail questions for future columns to givenslaw@tds.net. |