Higher Living Real Estate, LLC
Kay Wallace, Higher Living Real Estate, LLCPhone: (843) 516-0255
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How to know if your property title is clear

by Kay Wallace 09/29/2024

To sell a home and transfer ownership to a new owner, the property must have a clear title. Clear titles are documents proving legal ownership rights for the property in question. Without a clean title, the sale cannot move forward, and both buyer and seller might face hefty fees.

Here are some of the most common questions about titles and title insurance:

What is a clear title?

A clear title is any title with no lien from creditors or anyone who poses questions regarding legal ownership. A clear title-holder is the true owner of the property, and no one else can assert a judicial claim against them.

How does a clear title work?

Having a clear title can show the home has outstanding financial obligations, as it proves an owner can sell the property. Sale of property may become disputable without a clearly titled document or the proper ownership of the property itself. The existence of a lien can also possibly invalidate ownership.

Conducting a title search

Property title professionals can help find the details about ownership of a given property. The first stage in title clearing is title research, or title examination. During the process, the title company pulls the records pertaining to the title of the property from the local records office.

Depending on the age of the home and the municipality, title companies may conduct searches either through digital

Uncovering title issues

If there are issues discovered during the title research phase, they are known as title liabilities or "clouds" on the title. These indicate any issue which could block an unopposed owner's ownership for a long time.

What is title insurance?

Title insurance protects a potential buyer or mortgage lender in the event there are clouds on a title. The seller typically pays for an owner's title insurance policy, but lender's title insurance can also factor into the equation.

Finding out about claims against a title can cause delays and incur expensive administrative fees, but an insurance policy can provide coverage for risks like falsified documents or flawed records.

Understanding title insurance and the risks of title defects will help you be a more informed buyer or seller. When in doubt, work with a real estate agent or insurance professional for more guidance regarding legal claim to a property.

About the Author
Author

Kay Wallace

I am passionate and dedicated to achieving results that enhance your lifestyle and well being. If you’re looking for a realtor that listens to your needs, responds quickly and has your best interest in mind, look no further. I will treat your money as if it is my own and help guide you in your real estate process with open eyes.

With over 15 years experience in the real estate industry, specializing in all aspects of the Residential Real Estate market to include resale, new construction, relocation, investment & first time home buying.

My real estate career is not just a business to me...it’s my Ministry.

I look forward to meeting you!