In a real estate lawyer’s perfect world, sellers would have a title search done for their property before the listing goes live. But life isn’t perfect, and this isn’t usually the case. A title search is usually conducted just before the close of the property.
Simply put, “title” refers to the legal ownership of a property.
When you are selling, the deal will not close without a current title search on your property. A title search ensures there are no hindrances for a new owner taking possession.
Often, a title search will go through without a hitch. A title search happens before the Requisition Date set out on the Agreement of Purchase and Sale, and if there is an issue found, the lawyer for the buyer makes a formal request to the lawyer for the seller for a correction. If the issue is complex, it occasionally requires an extension of the closing date. Thankfully, this is not a common occurrence.
Your real estate team will work with your real estate lawyer to ensure your deal goes through without a hitch, but sometimes situations arise that are out of the ordinary.
What does a title search look for?
- Current property owners
- Existing liens on the property
- Current mortgages on the property
- Current and previous sale transactions
Some examples of red flags that a title search can find:
- Will and probate issues
- Land description discrepancies
- Title being of interest to other parties
Here is an example of a title search red flag that our office recently came across.
Melissa had her property on the market for sale. Jim and Gwen signed an Agreement of Purchase and Sale with Melissa. The deal was set to close on November 20th and Jim and Gwen were going to take possession on this date.
Our office conducted a title search on November 1st. During the title search, we found that the title of the property belonged to Melissa and her partner. It was revealed that Melissa and her partner were going through a divorce and were no longer communicating.
Our office was able to rectify the problem and we were in contact with Melissa’s partner who agreed on the sale of the property and signed the necessary documents.
The power of a great real estate team consisting of your real estate agent and your real estate lawyer can help your real estate deal go through even if it is a bumpy road. As your real estate lawyer, we suggest having a title search done before listing your property. This can save you headaches down the road!
McMurter & Associates has you covered.
McMurter & Associates has been providing real estate legal services for over 30 years in the Durham Region. If you have any questions about your real estate transaction, we are available Monday to Friday, 9am until 5pm. Email: info@mcmurter Phone: 905-666-9200