There’s nothing like being handed the keys to your new home, and having your real estate closing in your rear view mirror. The process is actually pretty straightforward, but there are definitely a lot of preparations to be made. These include home inspections, appraisals, financing arrangements, and legal filings. The key to a smooth closing is advance preparation, but many homeowners might not know where to start.
Sometimes, even the smoothest real estate transactions may take weeks to complete, and a lot of things can happen. That’s why it’s so important to make sure that you perform your due diligence and make sure that the seller is in a clear position to sell the property, and that there are no defects with the title (commonly known as title clouds). The most common title clouds you might encounter include delinquent taxes, child support, HOA dues, and legal judgments and liens. Fraud and forgery isn’t quite as common, but if a family member signed someone else’s name to a legal document to expedite a sale, it can result in major legal problems later. If there are any clouds on the title, they must be resolved before the title can be transferred. That is why title insurance is such an important part of each real estate transaction.
Every home has a story, and you need to know that story before you proceed. So many things happen over the course of a home’s lifetime, and this is particularly true when it changes ownership. Sometimes researching the title history of property can take odd twists and turns. If this is the case with your property, title defects may be the result, which can greatly affect the ability to consummate the sale of the property. If the seller owes delinquent taxes, HOA dues, or unpaid child support, there could be liens on the property. These problems are commonly known as “title clouds” and they must be resolved before the title changes hands. The title search will help the purchaser identify if there are liens in place, and afford the parties to resolve the issues in order to proceed with closing.