When purchasing a property, the process of searching the title is essential to ensure that there are no defects or liens on the property. Title insurance is designed to protect the homeowner and the mortgage lender against any potential title defects that may arise.

Here are a few common defects that can occur during a title search and how a title search can protect a potential purchaser of a property.

1. Prior Liens on the Property

A lien is a legal claim to an asset, in this case, a property. A lien can be placed on a property if there are outstanding debts that the current owner has not paid off. Such liens can be discovered during a title search. A title search can reveal any existing liens and give the purchaser of the property an opportunity to negotiate or clear those liens.

2. Errors in Public Records

Public records are used in a title search. Errors may occur in the records and can lead to a denial of a property transaction. The title search can catch any such errors and remediate them, thereby establishing undisputed ownership.

3. Omission in Property Transfer

A title search can uncover any omission in any property transfers leading to clerical errors. This can be a discrepancy between the property description on the original deed and the current description claimed by the owner. Such a discrepancy can be corrected to avoid any legal disputes that may arise that could threaten the sale of the property.

4. Undisclosed Heirs or Unreleased Wills

When purchasing a property, it’s crucial to know if there are any legal heirs. Hidden heirs or unreleased wills could affect the transfer of the property. A title search can help identify if there are any hidden heirs or unreleased wills that could threaten the ownership of the property.

Title Search: The Benefits of Title Insurance

Having a title search completed is essential to identify the above common defects and protect a potential purchaser of a property. While title insurance is not legally required, it is a smart investment to protect one’s investment in a property. A title search and subsequent title insurance policy can protect against any major financial loss and ensure that the property is genuinely owned by the person claiming to be the owner.

Conclusion

Own a property with confidence with a title insurance policy. Contact our title insurance company in New Jersey today for more information on how we can help you protect your investment in a property.