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Why Getting a Title Search and Title Insurance Are Important

Written by Posted On Tuesday, 01 August 2017 07:44
No property is without secrets, no matter how long it's been in the family. Know your property's history the way everyone else knows it. No property is without secrets, no matter how long it's been in the family. Know your property's history the way everyone else knows it.

“Why do I need a title search or title insurance?” some might ask. “This property has been in our family for 100 years!”

Well, we had a buyer who presents a good example for consideration.  He paid cash for real property from his uncle.  The property and the tracts around it had actually been in the family for 100 years, yet he still paid for a title search and purchased title insurance.  Some would wonder why he would bother, but there are a couple of very clear reasons:

1. Property Access

In our buyer’s case, he has to go through another tract to get to his property.  Was a deeded right of way recorded?  If not, what happens when the relative who owns the adjoining property sells to somebody else who doesn’t want our buyer driving through his property?  Even if the property stays in the family, some of the ugliest fights can be between family members!

2. Boundary Disputes

Just as with the access, were the boundaries surveyed and recorded or was it just understood that our buyer’s property ends at the tree line?  “Understandings” consist of each party relying on the other to be truthful, which may work out well until there’s a disagreement about something unrelated or a new neighbor moves onto the property next door, so they aren't a reliable method of determining property boundaries.  Documentation is a must!

3. Judgments

Did Aunt Betty pay that hospital bill after Uncle Henry’s heart surgery or was there a judgment attached to the property?  If there had been a judgment and the property passed to our buyer, the hospital would have still had rights to said property.  It’s important for every homeowner to that he or she will not be surprised by things like that.

4. Family Subdivision Restrictions

Often, when families first subdivide property they create rules and restrictions.  Many don’t want lots subdivided, so that may be one restriction.  Are there others?

So in the case of our buyer, even though the property has been in the family for 100 years he took the precaution of getting a title search done and purchasing title insurance, and now he can rest easy knowing he’s protected.

“Why do I need a title search or title insurance?” some might ask. “This property has been in our family for 100 years!”

Well, we had a buyer who presents a good example for consideration.  He paid cash for real property from his uncle.  The property and the tracts around it had actually been in the family for 100 years, yet he still paid for a title search and purchased title insurance.  Some would wonder why he would bother, but there are a couple of very clear reasons.

1.       Property Access

In our buyer’s case, he has to go through another tract to get to his property.  Was a deeded right of way recorded?  If not, what happens when the relative who owns the adjoining property sells to somebody else who doesn’t want our buyer driving through his property?  Even if the property stays in the family, some of the ugliest fights can be between family members!

 

2.       Boundary Disputes

Just as with the access, were the boundaries surveyed and recorded or was it just understood that our buyer’s property ends at the tree line?  “Understandings” consist of each party relying on the other to be truthful, which may work out well until there’s a disagreement about something else or a new neighbor moves onto the property next door.  So understandings are not a reliable method of determining property boundaries.  Documentation is a must!

 

3.       Judgments

Did Aunt Betty pay that hospital bill after Uncle Henry’s heart surgery or was there a judgment attached to the property?  If there had been a judgment and the property passed to our buyer, the hospital would have still had rights to said property.  It’s important for every homeowner to that he or she will not be surprised by things like that.

 

4.       Family Subdivision Restrictions

Often, when families first subdivide property they create rules and restrictions.  Many don’t want lots subdivided, so that may be one restriction.  Are there others?

 

So in the case of our buyer, even though the property has been in the family for 100 years he took the precaution of getting a title search done and purchasing title insurance.  He can rest easy knowing he’s protected.
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Jane Silek

Blue Ink Original is a title company that assists with both residential and commercial real estate closings, provides escrow services, and handles mortgage settlements. We've been in business since 1990 and have had zero E&O claims in that time; each of our settlement agents is a professional with an average of ten years of experience in her field.

https://www.blueinkoriginal.com/

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