We're all about titles today...  Why?  A title represents ownership of a property. When real estate is transferred, the title is conveyed from one person to another. It is therefore a vital part of a property sale or purchase. This article provides facts on title searches for North Carolina real estate purchases, what it is, and its importance.

Title Definition

Title is paperwork declaring the ownership and right to use a property. It is not a particular piece of paper but a group of documents that includes deeds, court records, property indexes, and loans. These are cataloged at the county Registry of Deeds and is publicly available.

Title Searches For North Carolina Real Estate Purchases

A title search is a detailed analysis of historical documents relating to a specific property. It starts with the current owners and traces back to past owners. The object of the title search is to discover specific problems or current claims that any party may have to a home. The ultimate goal is to certify that an owner has the ability to grant ownership to a buyer.

Examples of Title Issues

A title search may identify problems such as a liens on a property not being cleared, unpaid taxes, and judgments against the owner. Many of these can be quickly resolved in time for the actual closing while others may need an extended amount of time and effort to fix. Also, certain issues can be concealed and not easily identified even with a comprehensive title search. Some examples are forgeries, misrepresented facts, inaccurate deeds, and typos. These can stay concealed for several years and may jeopardize the rights of the current owner when eventually uncovered. Title insurance is designed to cover this risk but typically does not include coverage for everything.

Important Title Facts

Title searches are a critical part of the real estate purchase process and are generally completed by a closing attorney or agent. No matter how meticulous a title search may be, it is important for buyers to think about selecting title insurance to cover rare problems. Speak to your attorney for more details on title searches for North Carolina real estate purchases and to make an educated decision on insurance.