Buying a home is a momentous occasion — and it’s usually the biggest financial transaction most people ever make. That can make buying a home scary, too, because you want to make sure that you’re not making a mistake.
One way that you can protect yourself during the home purchase process is to have a title search done on the property you opt to purchase. The title search helps you to find out if there are liens against the property. Things like unpaid taxes or outstanding invoices to contractors who worked on the home may lead to a lien on the property.
Why are liens on the property important?
Liens on the deed to the property mean that someone else could claim the property as their own unless you pay the lien off. A lien will transfer to you as the new owner from the old owner since it follows the deed and not the owner. Buying a home with an open lien isn’t ever a good idea.
It’s possible to get title insurance on a property; however, this only protects you from things that are discovered after you close. The title search is meant to unearth these issues before you close so that they can be taken care of before the deed transfers to you.
Anyone who’s buying a home should ensure that they’re covered legally. Having your contract reviewed by someone familiar with this area of law is beneficial because they can spot errors or omissions. This can help to ensure that the home purchase doesn’t come back to haunt you in the future.