When buying an Austin home, there are many things that must happen behind the scenes before a closing on the property is complete. One of those is a title search. The property must be clear of all liens and debts before a title underwriter will insure it. Otherwise, a lender may not finance the purchase. One way to ensure a clear title is for a title examiner to do a search on the Austin home. This is done in the normal course of buying and selling a home and is ordered by the buyer. If a seller already has a clear title, this will speed up the process. If not, the buyer and seller must wait until everything is handled and the title is clear before the closing on the Austin home sale can go through.
The title examiner will typically go back 60 years to see if there are any liens, missing heirs, unreleased deeds of trust, judgments or Uniform Commercial Code (UCC) filings and financial statements attached to the Austin real estate property before it can be released. One of the most common problems currently encountered by title examiners is the presence of IRS or tax liens which must be paid. The title underwriter requires the liens to be released before proceeding with paperwork. This individual must verify if there is a lien present that it’s not against the person buying or selling the home. If there are judgments against an estate, it attaches to the property. Judgments are typically enforced for 15 years.
In recent times, many titles are hung up in the process by foreclosures and bankruptcies. If the foreclosure isn’t done properly, the property might not be insurable. If this is the case, the foreclosure paperwork will have to be redone by an attorney before the title insurance can be issued. This creates a delay in the closing. In the case of a foreclosed property, the title underwriter will have to send notices to the people involved and ensure that all taxes are paid and up-to-date and that there are no other liens. In the case of a bankruptcy, the property has to be released by a judge with a statement saying it can be sold.
Usually, the buyer is the one to order the title search. However, if the seller is concerned that the title isn’t clear, it is possible to order one through an attorney to check and be sure. If you are interested in buying a foreclosed property, you may wish to have a title search done on the property before entering into the buying process to see if it’s clear. This may take up to two weeks, but may save time in the long run.