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.
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