When purchasing a new home, it is easy to get caught up in the excitement of finding your dream property.
Prior to signing the dotted line, it is important to conduct a title search. It is an investigation into the history of a property’s ownership to ensure there are no unforeseen issues or legal complications.
1. Uncover ownership disputes
A title search can reveal any disputes or conflicting claims to ownership of the property. Without a thorough investigation, you could find yourself in the midst of a legal battle over who rightfully owns the home. By conducting a title search, you can ensure that the seller has the legal right to transfer ownership to you.
2. Identify liens or encumbrances
Liens or encumbrances on a property can restrict your ability to use or sell the home freely. These could include unpaid taxes, outstanding mortgages or unpaid contractors’ bills. A title search will uncover any existing liens or encumbrances, allowing you to address them before finalizing the purchase.
3. Protect your investment
Buying a home is one of the most significant investments you will make in your lifetime. A title search helps protect your investment by providing peace of mind that the property is free and clear of any legal issues that could jeopardize your ownership rights.
4. Prevent future legal headaches
Discovering title issues after closing on a property can be a costly and time-consuming ordeal. By conducting a title search upfront, you can prevent future legal headaches and potentially save yourself from expensive litigation down the road.
With home prices expected to dip 1.7% during the next year, the time may be prime for finally buying a new home. Before taking the leap, due diligence is a must to enjoy your investment without unexpected hassles.