What are title clouds?

The average home buyer looks at eight or more houses before making an offer, and many of us see as many as our realtor is willing to show us. But your home is probably the most important purchase you’ll ever make, and you can’t afford to be hasty. It’s perfectly natural to want to close quickly once your offer is accepted, but it takes an entire team of professionals to make the necessary preparations for closing. First National Title (FNT) is proud to be Arkansas’s largest independent title company, and we’re here to ensure that the sale is consummated professionally and diligently for all parties concerned.

We have 25 locations to serve you throughout The Natural State, and you’ll always be able to work with an agent in or near your community. Every decision we make is designed to conduct the transaction correctly, and we’re happy to answer as many questions as you have to ensure you’re properly prepared for closing. One of the most important services we offer is a title search to ensure that the seller can demonstrate outright ownership and is in a position to sell the property. If there are any encumbrances, commonly known as “title clouds,” they must be resolved before closing.

Title clouds are so named because they can cast a shadow over the closing, and they typically involve liens against the title if the seller owes back taxes, HOA dues, or child support or has any outstanding legal judgments; those outstanding debts must be satisfied before the property can change hands. Some title clouds are simple clerical errors that are easy to resolve, but If a previous owner died without leaving a will, there might be previously unknown heirs with a legitimate property claim.

After our abstractors are satisfied that the title is unencumbered, we’ll conduct the closing, and then issue you an owner’s title insurance policy. We offer title insurance from highly rated underwriters, including First American Title Insurance Company, Chicago Title Insurance Company, Commonwealth Land and Title Insurance Company, Fidelity National Title Insurance Company, and Old Republic National Title Insurance Company. Your title insurance protects you in the event of a future title dispute and will be effective for as long as you own your home.

If you have any questions about title insurance, contact us online or at any of our 25 convenient Arkansas locations listed below!