The Title Examination is a thorough examination of all public records that affect the property a buyer is purchasing. Such public records include county, municipal and those date records stored in a data storehouse maintained by the title companies.
All due diligence will be been taken when preparing and signing documents but we cannot foresee any complications that may arise due to any past claims on the property. Therefore, title examinations are necessary.
We are searching for any defect in the title by reviewing prior mortgages, judgments, and liens to make sure they were all paid in full and past wills, deeds and trusts, making sure the title has passed correctly to each new owner. It requires a name search and a close examination of all previous notary signatures.
A title examination involves a thorough investigation of all public records on the property you are considering. Unpaid taxes, an unsatisfied contractor’s lien, a boundary dispute, even fraudulent documents can make the title of the property invalid because a claimed prior holder of the title never legally owned the property or there was an inaccurate description of the property or for many other reasons..
Additionally, an examination also determines if any actions are required to ensure a good, marketable record title. If defects are cleared up, the title is declared "Marketable" and the property may proceed to closing. If not, the defects can be cleared up or are insignificant enough not to affect the title in the future and declare the title "Insurable".