Foreclose Online
Generally, the search is performed to determine the answers to two questions.
* Does the seller have a saleable interest in the property?
* Do any liens exist on the property which need to be paid off at closing
(mortgages, back taxes, mechanic's liens, or other assessments)?
A title report also shows any easements, or recorded legal rights to the
property or portions of the property. For example, a previous owner may have
legally given a neighbor the right to share the driveway, or the city may have a
right to strips of the property for putting power or communication lines or
water or sewer pipes.
In the USA, the buyer of a property will usually purchase title insurance, which
protects the buyer from any title problems that may arise after sale (such as
liens that were missed during the search).
A title search is also performed when an owner of a certain real property wishes
to mortgage his property and the bank requires him to insure their transaction.
Generally, there are 2 main types of title searching, and they are;
1. Full Coverage Search
2. Limited Coverage Search
Other types of title search:
1. Non-Insured Reports
2. Foreclosure Guarantee Search
Full Coverage Search
A full coverage search is usually done when creating a title report for
Sale/Resale Transactions and for transaction that involves Construction Loans.
It generally includes;
1. Property Lien Search
2. Search for Easements, CC&Rs (Covenants, Conditions and Restrictions),
Agreements, Resolutions and Ordinances that will affect the real property in
question.
3. Search for liens against the owner and the other parties on title.
4. Search for liens against the buyer (for sale transactions only).
5. Search for Bankruptcy proceedings against the owner of the property.
Limited Coverage Search
A limited coverage search is usually done when making title reports for
Refinance transactions that involves equity loans and for making simple Title
Guarantee Reports.
This kind of title searching usually includes:
1. Property Lien Search
2. Search for liens against the owner and the other parties on title.
3. Search for Bankruptcy proceedings against the owner of the property.
Non-Insured Reports
There are a variety of title searches which provide the customer with a report,
but no insurance. These are for informational purposes only, and are called by a
variety of names, such as Lot Book Report, Plat Certificate, 300-foot Radius
Report, and others. These informational searches are used mainly in two
instances:
1. Probate. This is when a family, lawyer, or court is dividing up the property
of a deceased person. Heirs will want to know what liens they are taking on and
who has rights to the land.
2. Subdividing. To create a subdivision, a person takes land previously platted
(legally named and recorded) under another name and renames and replats it as a
new development or subdivision. A report must be given to the city, showing
taxes paid and no liens. The owner can then sell the lots individually or en
masse, and may record Covenants, Conditions, and Restrictions, which govern how
residents may construct their houses or yards, and may limit other activities.
Many subdivisions have noise, pet, and trash laws as well.
Foreclosure Guarantee Search
A foreclosure guarantee is a type of report (e.g. Trustees Sale Guarantee,
Judicial Foreclosure Guarantee and Litigation Guarantee) that is used mainly for
foreclosing an encumbrances (or a lien) in a certain property. The title
searcher will perform a full coverage search to the property in default and a
search for the addresses of the lien holders to the property in default. The
addresses will be used for sending copies of the notice of foreclosure letters
(such as Notice of Trustees Sale, etc.) to the lien holders to the property in
default.