Real estate law is a complex area of legal practice that involves protecting both buyers and sellers from engaging in unfair transactions. This is especially true for buyers, who may commit to buying a house without realizing there are other claims against it. Fortunately, lawyers can help in conducting title searches and in obtaining adequate title insurance. This overview provides a better understanding of that process.

What is Title Insurance?

Under real estate law, a title is issued for each piece of property. The record of that title allows lawyers, agents, and lenders to look back at that property’s history of ownership. Performing a title search before buying a property allows the interested party to verify that no one other than the seller has an active claim to the property.

Once a title search has been conducted, the buyer is obligated by their lender to buy title insurance for the property. The insurance is purchased with a one time fee that’s typically based on the market value of the home.

This coverage protects the policyholder against claims on the property. If a tax lien, inheritance, or other issue arises to question the ownership of the property, the title insurance policy will reimburse the policyholders what they paid for the property.

How Can an Attorney Help? 

Conducting a title search requires locating and combing through countless documents, which attorneys skilled in real estate law have experience doing. Public legal records, like deeds, liens, wills, divorce settlements, and property assessments, must all be scrutinized to determine the chain of claims for that property. This is more complex than doing an internet search and often requires traveling to different government and financial institutions to verify the information.

After the search, there may also be past claims that need to be addressed. When you present the search results to the title insurance company, their adjuster will work with your attorney to determine how those claims will be addressed. In some cases, the insurance company will be willing to insure against those claims, but that’s not always the case. If a claim won’t be covered by the insurance, you may need an attorney to advise you on how to handle that situation.

An attorney knowledgeable in real estate law is a valuable asset when conducting the title search and obtaining title insurance. The trusted lawyers at Lee, Livingston, Lee, Nichols & Barron have been practicing law since 1948, and the firm is a member in good standing of the Alabama Bar Association, Alabama Defense Lawyers Association, and several other legal affiliations. This Dothan, AL, law firm provides the legal services you need to pursue any real estate transaction and works hard to build trust with each client. You can schedule a consultation online, or by calling (334) 792-4156.