Whether you are a Florida native or someone moving to the Sunshine State, a title review is a cornerstone of a real estate deal because it acts as the lifeblood of the due diligence process. This procedure verifies the property seller’s ownership and uncovers potential ownership problems. It’s crucial whether you’re on the selling or buying end of a property deal.
At Law Office of Kimberly A. Abrams & Associates, P.A. and its subsidiary title company, Evolution Title & Closing Services, LLC, we offer extensive real estate title and legal services to businesses and individuals involved in the sale or purchase of residential or commercial property in Fort Lauderdale and the surrounding area. One of those services is guiding clients through the often-complex process of conducting a title review, which is also called a title search.
What is it?
A title review/search is critical for any transaction. It involves examining all documents related to the property’s ownership history. The review aims to identify and flag any hurdles to a successful ownership transfer by searching for liens, mortgages, deeds or other issues that could prevents a clear title. A title review also includes a comprehensive look at land use and zoning restrictions as well as easements and encumbrances that might impact the property. A title review identifies and strives to resolve property issues to ensure a smooth transaction.
The title review process
A title review should involve a systematic and detailed approach that includes these steps:
- Title search: This examines public records and retrieves property history documents. A title search may reveal encumbrances, liens and other claims against the property and provide information on all interested parties, including lenders.
- Title insurance policy: Obtain title insurance to protect the buyer from financial losses and damages caused by a defective title. For instance, if a buyer discovers a title defect after closing that was not disclosed during the sale, the policy covers any resulting damages and losses, up to policy limits.
- Closing: After the title search and addressing any issues, the parties can close the deal. All parties must sign all transaction-related documents for it to be legally binding. A thorough title review before closing can provide peace of mind to a buyer as well as protect them from hidden ownership claims and other surprises.
Skipping a title review is an unnecessary risk
Potential buyers in real estate transactions might attempt to cut costs by conducting a title review themselves or skip over this step entirely. However, several possible risks include transaction delay due to undiscovered legal disputes, unresolved liens as well as zoning, land or ownership issues. Any of these can put a deal in jeopardy.
We can assist with a title review to uncover any issues that may affect the ownership transfer and help resolve any discovered issues promptly and efficiently.