What is a Title Examination?

Real estate ownership is more complex than other forms of ownership. For example, the title represents ownership of the property. But how do you know the title is legitimate? What if it has encumbrances? That is where a title examination is useful. However, you may not be aware of the steps that go into a title examination or the issues they may uncover.

Read this blog to explore the title examination process and what to expect.

The Basics of Title Examination Services

The title examination or title search process has different stages. By understanding these stages, you can feel more knowledgeable about your real estate transaction. You can ask your closing attorney or real estate agent about the title examination process to understand what to expect. Let’s explore the stages of a title examination.

Local Laws and Restrictions

Local zoning and land use laws can impact how you can use your property. These laws can be especially important if you plan to develop the land or alter the property.

Restrictions may include building heights, setbacks, lot coverage, environmental concerns, and more. They can also determine whether a property is for residential, commercial, or industrial use. Your examiner will check for these legal restrictions in documents such as deeds, laws, ordinances, and conveyances. Knowing these beforehand can help you decide whether to proceed with the purchase.

Property Easements

Easements grant limited rights to individuals to use part of the property. Common examples include shared driveways and walking paths. In some cases, utility easements may also be present so workers can access infrastructure. If you buy a property with easements, you cannot deny or inhibit the right to use these areas. For instance, if there’s an easement for a walking path, you may need to consider this in your landscaping plans. Understanding these potential impacts is crucial in deciding whether to proceed with the sale.

Boundary Encroachments

Boundary encroachments are among the most common real estate issues. Dealing with boundary disputes can be stressful. As a buyer, you have the right to know about them since they can affect the value of your property. Negotiations can resolve most boundary disputes. However, some may require legal action.

Legal Descriptions

A title examination would not be complete without checking the title itself. The examiner will check if the legal description correctly states the location and the property’s metes and bounds. They’ll also review the description for mistakes and ensure it meets all legal requirements. Ensuring that your legal descriptions are accurate is essential since it directly affects your ownership rights.

The cost of a title search depends on various factors, including professional charges, property value, and location. The duration of a title examination depends on the documents’ availability and the case’s complexity. Your title company may also be able to help you clear clouds on the title if the examination uncovers any.

Do you need a title examination? Click here to contact First National Title & Escrow. We offer thorough title examinations as well as title insurance. Reach out now to learn more about our services.

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