Now that the teeming millions have successfully solved the mystery of the meaning verkocteh/fercockta, I was wondering if anybody could help me with a real estate question as information seems to be a little hard to come by on this point. My girlfriend insists I should have a lawyer do a tittle search on some property I’m interested in. They want about three hundred simoleons for it. I understand they have to make a special trip and, if it’s that cheap, they probably have some assistant doing it which means I might be able to do it just as easily myself which will save money and make me better informed in this mysterious yet potentially profitable realm. Anyone knows what goes on with these? Is it a simple procedure or do you really have to be an expert?
A full title search involves mapping a chain of title by examining all the recorded deeds concerning the property. The searcher will then examine all encumbrances of record, including mortgages, easements, restrictive covenants, mechanics’ liens, tax liens, or judgment liens. Finally, the searcher will determine all real property taxes and assessments, like for sewer or water, that are due for a particular piece of property.
In order to get a mortgage to buy property, the lender will usually require both a title search and title insurance, and will probably not consider your search acceptable (for one thing, they like to mark up these services at closing). You, too, should have title insurance. There are courses in title searching, and it’s definitely somethig that requires know-how; it’s usually worth paying for someone else to do it (but not a lawyer – use a title company in the county where the property is located).
A title search merely looks at the chain of title for a given property and checks to see if there are any liens against that property. There is zero need to physically visit the property and can be done from the comfort of an office. If you are getting a mortgage on the property you can count on the lender doing at least one if not several title searches (the lender will almost never allow the mortgage to go through unless the title is clear so if you default on your loan they are the ONLY ones in line with a claim on the property).
$300 seems excessive as a title search can be done for around $40. They are probably just charging that because they are attorneys. Still, a title search is a MUST even if you are paying for the property outright out of your own pocket (i.e. no lender involved). You do not want to be stuck with a property only to find later that the last owner left a $15,000 unpaid water bill (even thought the previous owner didn’t pay the water company will collect from YOU…the current owner…the debt goes with the property, not who incurred the loss).