Rhode Island Title Search: When Do You Need It?

Having a clear title is one of the most important elements of a real estate transaction. While it would be great to trust people that the title is clear and legal, you don’t always know. It may be the case that the transferor doesn’t know either. If you happen to enter a transaction and a title issue comes up, it could be costly. That’s why a title search is an important element of property transactions. This post will explore when and why you may need a Rhode Island title search.

Rhode Island Real Estate Watch

As of June 2024, the median sale price of homes in Rhode Island was $521,700. However, the real estate market in Rhode Island is always changing. Contact First National Title & Escrow for title services in Rhode Island.

When Do You Need a Rhode Island Title Search?

A title search is a process of examining public records relating to real property. It ensures that the seller has the right to transfer the property and that the buyer can use it without any ownership issues.

Why is a Title Search a crucial step?

It is difficult to express just how important a title search can be. Here are some reasons why you may need one.

1. It verifies whether the property’s title is clean. What is a clean title? It simply means that the title is free from legal issues. That means no unknown owners or other people may have rights to the property.
2. A title search uncovers liens and other encumbrances. If a property has a lien, another party has a legal right to it. It is often as a result of debts. Examples of liens are mortgages or legal judgments.
3. Title searches can also discover title defects. Defects in the title can pose future problems and affect how you use your property. Boundary disputes, different owners, and errors in public records are some of the examples of defects.
4. A title search can also help you clear title issues. Once you discover an issue, you can develop plans for addressing it.

How Do You Do Title Search?

Title searches are complex and require attention to detail. The following are the basic steps of a title search.

1. Identify the Property: The first step is identifying the property and its location.
2. Chain of Title: The chain of title accounts for all transactions in the property’s history. It starts with the most recent deed and follows it through the years.
3. Title Report: Check for court and tax records for liens or encumbrances. After that, compile the information into a report summarizing any findings relating to the property.

Title searches require expertise and know-how. While it is possible to search public records on your own, it is better to hire professionals. In many cases, transactions require a professional title search.

Do you need title services in Rhode Island? Click here to contact the First National Title & Escrow team. We are your real estate law experts in Rhode Island.

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