The Importance of Getting Proper Title


When you’re buying a home or commercial property, one of the most important steps in the closing process is getting proper title. Proper title ensures that you have legal ownership of the property and that there are no outstanding liens or claims against it. Getting proper title means is essential for a successful real estate closing.

What is Proper Title?

Proper title refers to legal ownership of a property. It means that the seller has the right to sell the property and that there are no outstanding liens or claims against it. When you get proper title, you have the legal right to occupy and use the property, and you can transfer ownership to another party if you choose to do so.

Why is Proper Title Important?

Proper title is essential for a successful real estate closing for several reasons. First, it ensures that you have legal ownership of the property and that there are no outstanding liens or claims against it. This protects your investment and gives you the peace of mind of knowing that you own the property free and clear.

Second, getting proper title ensures that you can obtain title insurance. Title insurance is a type of insurance that protects you against financial loss due to title defects or issues that may arise after the closing. Although owner’s title insurance may be optional, most banks require it if you are obtaining a mortgage. If you don’t have proper title, you won’t be able to obtain title insurance, which can leave you vulnerable to financial loss if issues arise down the line.

Finally, as noted above, getting proper title is essential for obtaining financing. Lenders require proper title (and generally title insurance) to ensure that they have a valid lien on the property and that there are no other outstanding claims against it. If you don’t have proper title, you may not be able to obtain financing for the property, which can derail the entire transaction.

How to Get Proper Title

Getting proper title requires a thorough title search and examination. This process involves reviewing public records, including deeds, mortgages, liens, and other legal documents, to ensure that the seller has legal ownership of the property and that there are no outstanding claims against it. A title company and/or real estate attorney can perform the title search and examination and provide you with a title report that outlines any issues or defects that may need to be addressed before closing.

In conclusion, getting proper title is a critical step in the real estate closing process. It ensures that you have legal ownership of the property, can obtain title insurance, and can obtain financing. To get proper title, you’ll need to perform a thorough title search and examination to ensure that there are no outstanding liens or claims against the property. If you’re buying a home or commercial property, make sure to work with a reputable title company or real estate attorney to ensure that you get proper title and protect your investment.

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