What to Know About Title for First Time Homebuyers

Buying a home is a huge step for many Americans. One of the things that happens during the home buying process is a title history check. Here are a few reasons why it is important to check the title before purchasing.


If you use a home mortgage company to finance the purchase of the home, you likely must purchase title insurance Ponte Vedra. The lender requires the insurance to protect their interest in the home should there be an issue with the title. Even owner’s not using a lender can benefit from title insurance. The total amount you pay for the property is covered under the policy for however long you own the home. The title company searches for issues and claims with the title.


Common issues that can arise on the title can prevent the sale from going through. Delinquent taxes and outstanding judgments mean the title isn’t free. A contractor the seller failed to pay can put a lien on the title requiring payment before the property sale. Those payments must be made prior to the sale by the seller. Sometimes there are additional owners on the title either unbeknownst to the seller or purposefully omitted from the sale. These other owners must also sign off on the sale before it can go through. The title search can help you learn about any deed restrictions including what the property can be used for. Rights-of-way and easements are shown allowing you to know before the purchase what you can and cannot do on the property.


Using a title company ensures that the process of title search, insurance and handle claims goes smoothly. Most of the time homebuyers can expect no lasting issues with claims arising from title issues. Closing may be delayed depending on what comes up in the title search which is why starting the process early in the buying process is essential. Once the homeownership transfers, keep the title in a safe place.