Everything You Need to Know About Home Titles


As a prospective homebuyer, you'll encounter various documents. This can get overwhelming very quickly. You'll deal with mortgage contracts, deeds, sales agreements, and many more. To help make things clearer, here's a brief guide on land titles:

What It Is

A title is proof of ownership. It's evidence that a piece of property, whether it's land or a house, belongs to you. Without it, the legal system will not recognize your claim.
It contains the full name of the owner. You'll also find the technical descriptions of the property and any annotations about the transaction and other relevant information.

How It's Transferred

A title transfer occurs as you close your negotiations under the terms both parties agreed upon. For this to happen, the buyer will be given a deed. The document shows the people involved, the parcel of land, and the requirements of the transaction.
Once the deed is filed at the county office, they'll produce a title with the name of the new owner on it. You'll be given a copy of the document for your records.

How It's Governed

Real estate governance in the United States can vary. There are federal, state, and local laws to be followed. But, generally, courts rely on written documents. If there's an issue with your title, deed, or sales contract, the judge will refer to the terms agreed upon to make their decision.
It's also crucial to note that each state has exclusive jurisdiction over the land within its borders. They can enact their own laws and policies; what happens in one area may not occur in another.

How to Keep Yourself Protected

Before buying any piece of property, conduct a title search. Let an investigator look through the documents pertaining to the land you're about to purchase. If there are any issues or discrepancies, such as unresolved claims, they'll alert you immediately. This will protect you from accepting liabilities for things the previous owners should have been responsible for.

You can purchase title insurance as well, just in case the investigator misses something. It'll cover losses if someone disputes your claim in the future, while also paying for legal resolution costs.
And, once you've finalized your transaction and have the document with you, keep it in a secure location, like a safe deposit box. While owners can request copies at any time, it's still a good idea to take precautions. After all, you don't want it falling into the wrong hands.

A home title is the most important document you'll receive when purchasing a house. Hopefully, this primer answered your questions about it and made things a little clearer for you. If you have other concerns, ask your real estate agent for help.

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