Is a Title Search Necessary?

September 19, 2022

Yes! To close a real estate transaction, a title search must ensure the property is free and clear of defects, and the seller has full capacity to sell. Any issues found must be satisfied and removed.

A title search is also required to issue a Florida Title Insurance policy, and since buying a property is an important investment and there are so many issues that can arise, it wouldn't be wise to leave your investment unprotected.

To give you a better perspective of why it is important that we conduct a title search on the property, through this article, we will explain the purpose of a title search and go through each step of the process, and explain the benefits of having title insurance to protect yourself from the property's past further.

THE PURPOSE OF A TITLE SEARCH

As mentioned, a title search is required to close a real estate transaction. Its main purpose is to discover possible liens for unpaid taxes or loans, easements given to neighbors or the city by previous owners, errors in public records, undiscovered heirs, and all other defects and to amend them so the buyer and his lender wont be liable.

A title search also mitigates risks, so a title insurance policy can be issued.

Title Search Process

As your title company, we research public records to uncover any errors, liens or encumbrances that might be held against the property.

By doing so, we can discover issues such as:

• Liens on the property due to unrecorded property release after a paid-off mortgage.
• Debts due to unpaid taxes, HOA payments, or contract work done on the property.

Discovering these defects allows us to take all necessary measures to rectify them and cover all debts, so you and your lender won't be responsible.

We will also verify the property's boundaries and legal description and search for any easement given by previous owners to neighbors, the city, or any third party.

By doing so, we can discover issues such as:

• Fences or structures build beyond your property line.
• Neighbor's fences or structures build within your property line.
• Easements such as the right to use your driveway to a neighbor.
• Easements such as the right to pass pipelines and electricity lines given to the city, company, or a third party.

Finally, we will analyze documents and conduct all necessary investigations to ensure the seller has the full and undisputed legal capacity to sell the property.

By doing so, we can discover issues such as:

• A forged deed.
• A fraudulent seller trying to impersonate the right full owner.
• A spouse trying to sell a property without the other spouse's permission.
• A sale of an inherited property, unknowing there are other heirs.

Discovering these issues through a title search gives you the option of pulling out of a fraudulent deal or can open up the possibility for the seller and other heirs to reach an agreement to sell.

Title Insurance

Once the title search is done and no defects or encumbrances were found —or if found, were settled— we will issue title insurance for your property.

As no title search is infallible, title insurance can be issued to protect you —owner's title insurance— or your lender's title insurance— from any costs derived from future claims, liens, or lawsuits related to the property's history.

While owner's title insurance is optional, your lender's title insurance will be required if you want to take out a mortgage loan, whether it's to buy or just refinance.

But even if it's not mandatory in your particular case, we advise you to get an owner's title insurance policy for your property for the following reasons:

• Safetyfor your investment.
  Although risks are substantially lower after a title search, there's always the possibility that an unforeseen issue might arise. Through a single payment, your title insurance policy will take care of any cost of undiscovered liens or lawsuits filed against you.


• Risks are transferred to the insurer and spread among policyholders.
  With a title insurance policy, any remaining risk is transferred to the insurer, who spreads it among many people. Whenever an issue occurs, it is handled with the funds placed by the sum of policyholders.

CHOOSING KEY TITLE & ESCROW AS YOUR TITLE COMPANY

Given that a title search is necessary to close your real estate transaction, it's better to have a title company capable of handling the entire process under one roof.

At Key Title & Escrow, we offer title searches, title insurance, and various services, such as escrow, homeowner's insurance, state-wide notary services, and many more that let us guarantee a quick and hassle-free closing every time.

No matter where you're located, we have the resources to serve you across the state of Florida, even on weekends and after hours.

Plus, with over 24 years of service in Florida's real estate industry and an impeccable reputation, you can bet your transaction is in the best hands.

So if you found this article useful and are looking for a title company to handle your title search and help you throughout the closing process, call us at (305) 235-4571 or toll-free at (800) 547-0006. If you prefer writing, you can also fill out the Contact us form on this page and we will get back to you as soon as possible.