The rights that come from legally owning property are referred to as the Title in the context of real estate. A clear title indicates definitive ownership. Because a defective title can put you in legal and financial trouble, every real estate transaction requires a thorough title search to ensure a clear and marketable title.
The process of checking and verifying property documents to determine legal ownership and any title defects is known as title verification. A title search is usually done for 12 to 30 years, but it can be done for less or more time depending on the goal of the party and the nature of the transaction.
Before investing in real estate, a title verification can safeguard you from fraud and save you money. You can make certain that the transferor is the actual owner of the property, that they have the authority to transfer the property’s rightful ownership, and that the title is free of encumbrances and defects by carrying out Title Verification. Additionally, this verification will help you reduce the risk associated with the transaction.
For transactions like sales and long-term leases, a full search is done for at least thirty years. For a comprehensive search, every aspect of the property’s history, including the flow of ownership rights, encumbrances, and litigation status, is searched and examined in detail.
A fifteen-year search is sufficient for transactions like licenses and leaves for short periods of time. It only talks about disputes, encumbrances, and recent transactions. The licensee can simply vacate the property in the event of a dispute because title ownership is irrelevant in these transactions.
Confirming that the transferor is the true owner of the property and possesses marketable rights to it is absolutely necessary. By comparing the original documents pertaining to the property to public records held by local authorities, this can be ensured. This includes any document that shows ownership and the transfer of title, like a sale deed, a conveyance deed, a gift deed, a will, a partition deed, and so on. If the sale is made by someone with power of attorney, the power of attorney must be carefully examined.
It is very common for a property to have been purchased and sold multiple times previously. Therefore, checking and verifying not only the title of the current owner but also that of previous owners is part of title verification. The historical record of the property’s title is called a chain of title. From the current owner all the way back to the original owner of the property, the chain is checked. It is necessary to examine all documents, including the most recent link deed and the mother deed.