One of the less talked about, more complex aspects of purchasing a home is the process of transferring the home title from one owner to another. While the transfer itself is a simple process, there are actually a number of steps that take place before the title transfer. This post will explain what you need to know about real estate titles.
What is a Title Inspection?
In order to sell your home, a title company must complete a title inspection. During the inspection, the title company will ensure that the following criteria are met:
- The title to the home is legitimate;
- The title, or deed, has been properly printed and recorded;
- The seller is the legal owner of the land or home; and
- The seller has the legal right to sell the home.
Once the above criteria have been verified, the title company will issue title insurance for the property. This insurance includes two policies with separate coverage for the lender and the homeowner. The insurance protects these parties against any possible lawsuits or claims against the property that could result from future disputes over the title.
When does the Title transfer occur?
Your title transfer will occur during closing. At this time, your home’s title will be transferred to the buyer in accordance with the agreed upon sales contract. To finalize the sale, the buyer will receive the home title and you will receive the money for your property.
Understanding all the moving parts of your home sale, including the title inspection and transfer, will help you reduce stress and simplify the process!
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