To sell a home and transfer ownership to a new owner, the property must have a clear title. Clear titles are documents proving legal ownership rights for the property in question. Without a clean title, the sale cannot move forward, and both buyer and seller might face hefty fees.
Here are some of the most common questions about titles and title insurance:
A clear title is any title with no lien from creditors or anyone who poses questions regarding legal ownership. A clear title-holder is the true owner of the property, and no one else can assert a judicial claim against them.
Having a clear title can show the home has outstanding financial obligations, as it proves an owner can sell the property. Sale of property may become disputable without a clearly titled document or the proper ownership of the property itself. The existence of a lien can also possibly invalidate ownership.
Property title professionals can help find the details about ownership of a given property. The first stage in title clearing is title research, or title examination. During the process, the title company pulls the records pertaining to the title of the property from the local records office.
Depending on the age of the home and the municipality, title companies may conduct searches either through digital
If there are issues discovered during the title research phase, they are known as title liabilities or "clouds" on the title. These indicate any issue which could block an unopposed owner's ownership for a long time.
Title insurance protects a potential buyer or mortgage lender in the event there are clouds on a title. The seller typically pays for an owner's title insurance policy, but lender's title insurance can also factor into the equation.
Finding out about claims against a title can cause delays and incur expensive administrative fees, but an insurance policy can provide coverage for risks like falsified documents or flawed records.
Understanding title insurance and the risks of title defects will help you be a more informed buyer or seller. When in doubt, work with a real estate agent or insurance professional for more guidance regarding legal claim to a property.
Terese Ferrara is a long-time resident of the Bay Area and has been a partner with the Goss | Ferrara Real Estate Team. She and her husband raised their two daughters in San Jose, where she successfully continues to build her real estate career.
After earning a bachelor’s degree from San Jose State University, she went on to teach in the San Jose Unified School District for 9 years. Transitioning to real estate was a logical choice, utilizing her patient demeanor to educate all levels of buyers and sellers. Knowledge and experience demonstrate her vested interest in delivering the highest level of care and professionalism to every client. She consistently strives to exceed her client’s expectations throughout the entire real estate transaction and remains a trusted advisor long after each close.
As a board member on KW Bay Area Estates’ Associate Leadership Council (ALC), she aids in support of culture and professional development strategies for over 180 associates. Terese is also a Director for the Santa Clara County Association of Realtors Foundation, which supports community service initiatives in Silicon Valley.
Terese is the consummate real estate professional dedicated to providing unparalleled service to her clients through ongoing training and education, keeping her on top of the dynamic market and latest real estate trends. Her high-touch approach coupled with honesty and integrity support her commitment to her client’s real estate needs.
