Understanding Your Real Estate Title Search Report

As part of your property purchase in Fort Myers or Cape Coral, a real estate title search was likely done on the property.  The report provides important information about the property and it’s allowed uses.  Understanding the report is essential for your enjoyment of the property.

Conducting A Title Search

More often than not, a real estate title company, like Title Junction, performs the title search.  Title Companies have extensive experience doing these searches, are familiar with the records that need to be searched and where those records are located.  It helps to have a local real estate title company perform the search for you since they are knowledgeable about local practices, laws and regulations.  In many cases, the property could be filed under different names.  It may be filed under the current owners name, the property tax ID number or the property address.  A local real estate title company will be familiar with these idiosyncrasies.

What’s Involved In A Title Search?

Real Estate title searches consist of detailed research into the history of a property.  The research will include an examination of past ownership and mortgages, surveys, maps, easements, taxation values, zoning, rights-of-way and flood zone status, to name a few.

The main objective of a title search is to determine if there are any not readily obvious restrictions on the property that would prevent the buyer’s full use of it.  Some of the more common restrictions are tax or contractor liens, which may negate the sale of the property until the liens are paid in full.  Other restrictions that a buyer might not be aware of ahead of time could include limitations on use put in place by a homeowners association or right-of-way or easement usage.

Title Searches Safeguard Your Purchase

The main objective of a title search is to make sure the property is legally available for sale by the seller.  A title search will reveal the current and past owners, reveal any outstanding liens against the property and identify anyone who may still have claim to the property.  Ensuring the property is available for sale safeguards your investment.  Most mortgage lenders will require a title search to safeguard their own investment in the property.

What To Expect From Your Report

Your title report will likely consist of the following, or similar, categories:

~ Deed information
Deed information will indicate who currently has ownership or interest in the property.  You should expect to see the name of the current owner in this section.

~ Tax Information
The tax information section will provide you with the most recent year’s property tax amounts and whether or not they’ve been paid. Along with and tax certificates that may have been issued. Taxes are paid to the county where the property is located; Lee County for Fort Myers and Cape Coral.

~ Liens or Judgements
Outstanding liens or judgments against the property will appear in the Judgments and Liens section.  Hopefully, nothing will appear in this section but if it does, take note.  These are the items that you will want taken care of before closing on the property.

~ Mortgage/Deed of Trust
Under the Mortgage/Deed of Trust section you can expect to see the outstanding mortgage amounts owed by the current owner.  Once the sale has been completed, these mortgages will cease to exist and your own mortgage amounts would appear if a new title search were conducted.

 Interpreting a real estate title report is a simple process, but it is a vital one.  You’ll want to make sure you understand what you are reading and ensure any discrepancies are rectified before you close on the property.