Reading your title report is like reading the fine print. It's important!
A title report is provided once you're in escrow. It lists all of the legal records related to the ownership and use of a piece of property. It provides information about the property's legal description, ownership history, and any liens or encumbrances that may affect the property.
When you're buying a home, it's important to review the title report carefully to ensure that the property is being conveyed to you free and clear of any issues that could cause problems in the future. Here are some key things to look for when reading and understanding a title report:
Legal description: The legal description is a detailed description of the property that includes the address, lot size, and any other relevant information. It's important to ensure that the legal description on the title report matches the property you are purchasing.
Ownership history: The title report will list the names of the current owner and any previous owners of the property. It's important to ensure that the ownership history is accurate and that there are no disputes or unresolved issues related to the ownership of the property.
Liens and encumbrances: A lien is a legal claim against the property that must be paid off before the property can be transferred to a new owner. An encumbrance is a legal restriction on the use or sale of the property. It's important to review the title report for any liens or encumbrances that may affect the property, as these will need to be addressed before the property can be transferred to you.
Deed restrictions: Deed restrictions are legal limitations on the use of the property, such as prohibitions on certain types of development or use. It's important to review the title report for any deed restrictions that may affect the property and to ensure that you are comfortable with these restrictions before purchasing the property.
Overall, understanding a title report is an important step in the process of buying a home. By reviewing the title report carefully and addressing any issues that may arise, you can help ensure a smooth and successful home buying experience.
And remember, you can always ask your escrow agent or title officer if you don't understand something on your title report. They've probably seen thousands of title reports, are very familiar with the language, and generally do a great job of clarifying things.
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