If you a planning to acquire property or have heard the term mentioned,you may be asking yourself what is a title search? The phrase title search is often used the real estate industry as the process of getting relevant documents that show or rather provide evidence of the history of a piece of property more often land. The purpose of such a title search is to ascertain interests in the property and provide guidelines on the real estate property in question.
Why is a title search completed
Title searches are frequently done in the event of a prospective buyer’s interest in the property, whether for commercial or residential property and may be combined with a business name search or asic name search to provide a full picture of information about the person or business that is selling the property. It can also be used in business when a business is selling some of its assets or looking for a buyer for the business itself, and selling the company name with it’s assets such as offices and warehouses.
The title search is performed to answer three fundamental questions:
1. Does the seller have any desire or interest in selling the property?
2. Has the property in question been acquired legally by the current property owner?
The purpose here is to be safe against legal litigation in the event the property was unlawfully acquired and sold.
3. Are there any kinds of restrictions in regard to the use of the piece of property in question?
Property, especially in urban areas has restrictions especially in usage. Restrictions like non-agriculture activities are common. For a potential buyer, being aware of such restrictions before the final purchase of the property is crucial. This is why, along with an asic name search for a commercial purchase, a title search is important.
Apart from a prospective buyer, the property owner can also do a title search. Such occurs often when the owner is considering acquiring mortgage or is placing the property as collateral when taking up a loan from a bank. Such a search will ascertain the true value of the piece of property and help the bank in determining a reasonable loan in regards to the true value of the property.
Any interested party interested in performing a title search, whether business or personal will in most cases choose to do so through a solicitor or title issuing government assigned agency, such as Infotrack. Infotrack can also provide an asic name search for commercial businesses, so you could essentially get all your searches done quickly and easily. The entire process involves looking at the official land records of the property in question. These documents will reveal the history of the land,as in all its previous and current users,mortgage records and interest in collateral. The main goal of such a title search is to make it clear by exposing any claims to a piece of property prior its transfer to its new owner.
Who are the grantor and grantees?
The recorded documents will often have the names of the involved parties. Theses are the grantor and the grantee. The grantor is the person interested in transferring ownership rights of the property,while the grantee is the person interested in buying the property rights of the property. In the event to property search was done for a mortgage or a loan,the grantor is the person seeking a mortgage or a loan and is giving away certain rights to the property for the purpose of securing a mortgage or a loan,and the grantee in this scenario is the lender (more than often the lender is a bank).
For potential property owners, a title search is a crucial and most necessary step in the process of acquiring property, as it will give the potential owner peace of mind after the property is bought. For commercial businesses, a title search can ensure that a new office building or warehouse won’t cause problems later down the line and cost the business money.