For the most part, purchasing a property involves a straightforward process that’s free from complications. Unfortunately, there are instances when a property title is accompanied by issues or disputes because a buyer failed to exercise reasonable caution and thoroughness. While consulting a reputable title company helps ensure you are purchasing a legitimate property, you should be aware of the following, to protect yourself from scams and other risks.

3 Tips About Property Titles

1. Titles & Deeds Are Not the Same

You are not wrong in thinking that both a deed and a title signifies ownership of a property. However, keep in mind that they are distinct from each other, and you might run into some problems if you think otherwise. A property title is a legal instrument that grants you the right to use a property because you are said to own it. This means you are allowed access to it, as well as permission to do modifications as you see fit. On the other hand, deeds are legal documents that outline terms of property title transfers between parties. Transfer of land ownership is not formally binding unless a legal copy of the deed is sent to the county clerk’s office.

2. A Title Search Is Crucial

A reputable title company will advise you to perform a title search before making a purchase. Doing so will help reveal potential problems with the property you are interested in, such as liens, forgery, easements, mistakes in deeds, or undisclosed heirs. Title investigators can thoroughly examine a land’s ownership history, including any liability that may come with it. If you proceed with a real estate transaction that involves unresolved issues, your contract may be deemed invalid. In case there are problems with the property that you are comfortable with, you can still purchase it if all owners sign closing documents, or all due taxes and fees are paid.

3. Invest in Title Insurance

Title insurance offers protection for both the buyer and the lender. It reduces the risks that stem from issues that don’t come up during title searches. Title insurance typically covers losses and legal costs that may be brought about by future ownership disputes, including legal assistance fees and payment for valid claims. For your peace of mind, connect with a reliable title company to understand more about how title insurance can safeguard your investment.

Trust the experts at Looney & Chadwell Title Services, LLC in Crossville, TN, when you’re looking to sell your property or buy a new home. The experienced attorneys at this esteemed title company offer proficient service for title insurance, title search, and other real estate transactions. Call them today at (931) 484-7129 to schedule an appointment, or visit their website for more information.