What are title clouds, and how can they affect closing?

It’s always an exciting time when you’re buying a new home, especially if it comes at the end of a long search. Once your offer is accepted and the property is under contract, you’re just an abbreviated time away from getting the keys and moving in. There’s a lot of work involved to get you to the finish line, but our closing and title professionals at First National Title (FNT) are ready to help you prepare for closing!

We’re proud to be Arkansas’ largest independent title company, and we have 25 locations to serve you located throughout The Natural State. We operate independently of ownership by a financial institution or a real estate agency, and you’ll always be able to work with an agent in or near your community. Before any real estate transaction can be consummated, the seller has to prove that he or she holds outright ownership of the property. Our title professionals will research the property’s history to ensure that there are no encumbrances on the title. These encumbrances are commonly known as “title clouds” because they can cast a shadow over closing.

Some title clouds are simple mistakes and easy to resolve, such as clerical errors. If a property owner owes back taxes, child support, HOA dues, or has any outstanding legal judgments, his or her creditors can put liens on the property title that must be satisfied before the sale. Sometimes there are more serious problems if a property owner dies without a will and leaves behind heirs with a legitimate claim of ownership.

Our experienced title professionals will leave no stone unturned, and we’ll provide an owner’s title insurance policy to help you protect your investment after the transaction has been consummated. Your policy will be effective for as long as you own your home, and it will protect you in the unlikely event of a future title dispute. Our policies are all underwritten by trusted insurers, and you’ll enjoy true peace of mind when you move into your new home!

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