Hello, this is Dave at TitleSearch.com and AFX Title. In this video, we’re going to explore the top five common reasons why individuals seek a title search on real estate. Drawing from our extensive experience of performing hundreds of thousands of title searches and scrutinizing millions of records, these reasons provide crucial insights into the significance of title searches.

1. Verifying Ownership:

The primary and most frequent reason for ordering a title search is to verify ownership. It involves delving into the records to identify the current owners of a specific property, understanding how they took title, and determining the duration of their ownership. This information is crucial, especially during property transactions, ensuring that the rightful owner is transferring the title.

2. Checking for Liens:

The second most common reason involves checking for liens on the property. These encumbrances can range from tax liens to child support liens and mechanic’s liens. Identifying any potential hindrances that might affect future owners is vital. Uncovering such liens provides a comprehensive view of the property’s financial standing.

3. Verification of Mortgage Holders:

Property owners often order title searches to verify the current mortgage holder on the property. This step ensures that the mortgage payments are made to the correct entity and that there are no unforeseen complications, such as the assignment or securitization of the mortgage to another company.

4. Reviewing Mortgage or Lien Amounts:

Another critical aspect of a title search is checking the amounts of mortgages or liens on the property. This involves validating the accuracy of recorded lien amounts, assessing whether the lien balance is increasing due to penalties or interest, and confirming that mortgage amounts are correctly recorded against the property.

5. Identifying Other Property Incumbrances:

The fifth reason revolves around identifying additional property incumbrances that could affect ownership. These may include real estate taxes that are due but not yet recorded as a lien, judgments against previous property owners, easements, mineral rights, and other encumbrances that may have implications for current or future ownership.

Deed Fraud Prevention:

A noteworthy mention is the prevention of deed fraud, a scheme used by criminals to execute a deed transfer without the property owner’s knowledge. Verifying ownership through regular title searches, especially for absentee owners or vacation properties, is a crucial step to thwart potential fraudulent activities.

The Official Title Abstract:

All these critical pieces of information are consolidated into what’s known as an official title abstract. This document, meticulously created by a certified title examiner, encapsulates the results of a thorough review and research process across various courthouses and government records. Whether you’re a law firm, mortgage company, title company, or a private individual, this official title abstract serves as a comprehensive snapshot of the property’s status as of the review date.

Leveraging Title Searches for Informed Decisions

The importance of title searches cannot be overstated. They serve as powerful tools for various stakeholders involved in property transactions, offering valuable insights and mitigating potential risks. If you seek more information about title searches, don’t hesitate to reach out to us at TitleSearch.com. We are here to help and provide the expertise needed for informed decisions in real estate matters.