A title tracks ownership of real estate. When real estate is transferred, the title is transferred from one party to another. It is therefore an essential part of a property transaction. This blog offers facts on title searches for Franklin TN property purchases, what it is, and its significance.

What is Title

Title is documentation declaring the ownership and right to use real estate. It is not a specific document but a group of documents that includes deeds, court records, property indexes, and mortgages. These are placed at the local Registry of Deeds and are accessible to the public.

Title Searches For Franklin TN Property Purchases

A title search is a detailed examination of historical documents on a particular property. The search starts with the current property owners and goes back to preceding owners. The goal of the title search is to identify certain defects or outstanding claims that any party may have to a home. The ultimate purpose is to demonstrate that an owner has the right to convey rights to a buyer.

Potential Title Issues

A title search can uncover problems such as a liens on a property not being released, unpaid taxes, and judgments against title holder. Many of these can be quickly resolved in time for the anticipated closing while others can require significant time and work to resolve. Also, certain issues may be hidden and not quickly found even with a comprehensive title search. These include forgeries, misrepresented information, inaccurate deeds, and typos. These can stay hidden for several years and can compromise the rights of the current owner when eventually uncovered. Title insurance is designed to address this risk but ordinarily does not apply to every scenario.

What You Should Keep in Mind

Title searches are a crucial part of the home buying process and are usually performed by a closing attorney or closing agent. Even when they are thorough, it is worthwhile for home buyers to look into selecting title insurance to cover rare issues. Speak to your attorney for more information on title searches for Franklin TN property purchases and to make an educated decision on title insurance.