Ownership of real estate is tracked by its title. When property is transferred, the title is conveyed from one party to the other. It is therefore an essential component of a real estate transaction. This blog offers information on title searches for NJ home purchases, what it is, and why it is significant.
What is Title
Title is paperwork detailing the ownership and right to use a property. It is not one particular document but a set of forms that includes deeds, contracts, property indexes, and mortgages. These are kept on record at the county Registry of Deeds and are accessible to the public.
Title Searches For NJ Home Purchases
A title search is a thorough evaluation of historical records relating to a specific property. It begins with the current owners and traces back to past owners. The object of the title search is to discover certain defects or current claims on a home. The ultimate goal is to confirm that the existing owner has the ability to transfer ownership to another party.
Potential Title Defects
A title search can uncover issues such as a liens on a home not being released, overdue taxes, and judgments against the owner. Some of these may be quickly resolved in time for the actual closing while others may need an extended amount of time and resources to fix. In addition, some problems may be concealed and not quickly revealed even with a thorough title search. Some examples are forgeries, misrepresented information, defective deeds, and typos. These can remain concealed for several years and can threaten the rights of a property owner when eventually exposed. Title insurance is available to cover this risk but may not include coverage for every possible item.
Important Title Facts
Title searches are a crucial step in the home buying process and are typically performed by a closing attorney or agent. Even when they are extensive, it is important for home buyers to consider buying title insurance to protect against hidden issues. Consult with your attorney for more advice on title searches for NJ home purchases and to make an educated decision on title insurance.