Is a Title Review Important in a Real Estate Transaction?
A title review plays a pivotal role in any real estate transaction and serves as the heartbeat of the due diligence process. This process confirms that the seller of the property is the owner and identifies possible issues with ownership. Whether you are selling or acquiring property, it is important to understand the significance of title reviews during real estate transactions.
We at Law Offices of Peter V Lathouris LLC can walk you through the often-complicated process of conducting a title review. We provide comprehensive real estate title services to individuals and businesses that sell or acquire commercial or residential property in Stamford, Connecticut, or other parts of Fairfield County and New Haven County.
What Is a Title Review?
A title review is an essential step in any real estate transaction. The process—also known as a title search—examines all the documents related to the history of ownership of the real estate that is being sold. The purpose of the review is to identify any obstacles to the successful transfer of ownership by looking for mortgages, liens, deeds, and other issues that may prevent the buyer from getting a clear title. A title review also involves a thorough examination of zoning and land use restrictions as well as encumbrances and easements that may affect the property.
The Importance of a Title Review
A title review is a key part of the due diligence process and should be conducted before signing any documents that would transfer ownership. This review is important for potential buyers because it provides them with a detailed and honest assessment of the property and offers protection against any possible issues related to the ownership. A title review aims to not only identify issues with the property but also resolve them so that the transaction proceeds smoothly.
The Process of a Title Review
A title review requires a meticulous and methodical approach so that the title is free of liens, encumbrances, and other issues. The title review process involves the following steps:
A title search. This step involves examining public records and retrieving documents on the history of the property that is being purchased. A title search may reveal liens, encumbrances, and claims against the property, as well as provide information on all parties who have an interest in the property, including lenders.
A title insurance policy. After a title search is complete, the next step involves obtaining title insurance as a means to protect the buyer from damages and financial losses caused by a bad title. For example, if the buyer discovers after closing that there is a title defect that was not disclosed before closing, they can obtain coverage for any resulting losses and damages through their title insurance up to policy limits.
Closing. Once a title search is conducted and any discovered issues with the title are resolved, it is time to close on the deal. The parties must sign all documents related to the transaction for it to be legally binding. An in-depth title review prior to closing can offer peace of mind to the buyer and protect them from any surprises, including hidden claims on ownership.
If you are purchasing real estate property, consider hiring an attorney to help you at every step of the transaction, including a title review. Our attorney at Law Offices of Peter V Lathouris LLC has experience in conducting title reviews and can assist you with all legal aspects of buying a property to avoid the catastrophic issues brought about by a defective title and minimize possible delays and complications.
Risks If There Is No Title Review
A potential buyer in a real estate transaction can reduce the costs associated with buying a commercial or residential property by conducting a title review on their own or skipping this step altogether. However, there are several potential risks associated with failing to conduct a title review or doing it unprofessionally, including:
A transaction delay due to unresolved liens, undiscovered legal disputes, zoning and land issues, or ownership issues; or
A possible deal cancelation due to unresolved issues.
By having an experienced attorney conduct a title search, you can avoid unnecessary delays during real estate closings and any unexpected surprises and expenses down the road. At Law Offices of Peter V Lathouris LLC, our attorney can assist you in conducting a title review to discover any issues that may impact the transfer of ownership and help resolve any discovered issues promptly and efficiently.
Our Clients Matter Most
Our attorney at Law Offices of Peter V Lathouris LLC are committed to helping our clients every step of the way when purchasing or selling property in Stamford or other parts of Connecticut. We wholeheartedly believe that the all-important title review process can save you substantial time and avoid unnecessary headaches. Contact our office today to discuss how our real estate title attorney can help in your particular situation.