Title Review Checklist: What Homebuyers Must Verify Before Closing

You’ve found your dream home and are going through the closing process. While you’re eager to wrap things up, taking your time is critical. One crucial step is reviewing the title report and ensuring everything is in order. This post will provide a title review checklist so you know what to verify before closing.

Follow This Title Review Checklist Before Closing on a Home

Ownership and Chain of Title

The first point to check is the seller’s ownership and right to sell. Verify that the seller’s name matches the name on the title and that there are no competing ownership claims. Investigate the chain of title to look for missing deeds, undisclosed interests, or recent transfers. Watch for issues like disputes among heirs or shared ownership.

The Property Description

Inaccurate or incomplete descriptions can lead to disputes with neighbors, financing issues, and problems during future sales. Verify that the description matches the property you intend to purchase, including boundaries, lot and block numbers, and parcel size. If there are discrepancies, they must be addressed before moving forward.

Liens Against the Property

Mortgage liens, property taxes, mechanic’s liens, or judgment liens can transfer to the buyer, creating unexpected financial obligations. Some properties may also have hidden liens that are more difficult to discover. Homebuyers should have a professional title search even if one isn’t required.

Easements on the Property

A property easement grants others the right to use a portion of your property for specific purposes. Examples include access for utility workers and shared driveways. Review the report to discover recorded easements and consider how they may affect your property rights and enjoyment. You should also evaluate the specific rights of the easement and location on the property.

Zoning and Land Use

The property may be subject to various zoning laws and land use restrictions. Confirm that the zoning laws align with your plans for the property. Be aware of land use restrictions, such as deed covenants or HOA rules. For example, an HOA might limit how you can alter or improve the property. Some properties might also face environmental regulations.

Property Encroachments

An encroachment involves a structure from a neighboring property that crosses the boundary. Common examples include fences, walls, garages, sheds, and driveways. Encroachments can impact property rights and affect future sales. They can also lead to disputes with neighbors. Buyers should review the title report and surveys to discover potential encroachments from neighboring land and the property in question.

Title Errors

While they might seem minor, title errors can cause significant problems for property owners. At the very least, they can delay closing. Look for misspelled names, incorrect addresses, and wrong parcel numbers. These defects usually result from human error, but you shouldn’t overlook them.

Buyers should know what to look for when reviewing a title report, but you should also have professional guidance. Ask your title agent to review the report and explain the findings. They can also help you address defects and other issues.

Do you need a title search for a property you’re buying? Click here to contact First National Title & Escrow. We can deliver a comprehensive title report and help you review it. Reach out now to learn more about our closing services.

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