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What is a title examination and why is it important?

On Behalf of | Jun 29, 2017 | Residential Real Estate |

An examination of a title may be something buyers and sellers have heard about doing, but it is also something they wonder about pertaining to the details of the process. A title examination is one of the most important aspects of a real estate transaction and can be essential to a successful transaction when purchasing real estate. Title examinations, in general, assure that the property being purchased is suitable for sale. The process looks for encumbrances on the property, which may not make it suitable to sell or may otherwise impact the transaction.

Encumbrances on property can include unpaid tax liens or restrictions that have been placed on the property at some point along the chain of title. The title examination process also reviews the history of ownership of the property and the deeds that have been associated with the property in the past. It will also review will and trust documents that could impact the property and its ownership. In reviewing the chain of title, the title examination assesses whether ownership of the property can be tied to anyone other than the buyer and seller associated with the present transaction that is being contemplated.

The title examination process takes place while the property is under contract and any concerns that arise during the process can be addressed or the buyer may choose to withdraw from the transaction. Because of the potential for competing claims of ownership of the property or debts associated with the property, the title examination can be the most important part of a real estate transaction. It is useful to have a professional conduct a thorough title examination as part of your real estate transaction.

There are many steps in the process towards completion of a successful real estate transaction. Because the process can be exciting, it is also important to note that it may also be equally important and complex. Thus, it is useful to be familiar with the title examination process and what it entails.

Source: Wisegeek.com, “What is a Title Examination?” Accessed June 26, 2017


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