A title search is one of the most important steps in the process of buying a home in Texas or any other state. The purpose of the search is to discover any problems that may prevent you from claiming ownership of the property after a sale closes. Discovering issues with a title may also prevent problems from occurring when you attempt to transfer the title to a future buyer.
Common issues discovered during a title search
There are many different issues that may be uncovered during a title search, such as the existence of an undisclosed owner or forgery. If a previous owner failed to pay a contractor, that contractor may put a lien on the property that will need to be addressed. If a previous owner failed to pay state or local taxes, the past-due balance must be paid at closing.
What to do with a title
Assuming that the seller has the right to transfer ownership of a home, you will receive an updated copy of the deed to the property. The new document will reflect the fact that you now own the home and that previous owners no longer have a claim to it. When you sell the property, the copy of the title that you received is invalidated.
It is important to keep the title in a safe place for as long as you own your home. However, if you lose it, your lender will likely be able to provide another copy of the document. It may also be possible to obtain another copy of the title by visiting the courthouse in the county where the home is located.
Generally speaking, issues with the home’s title will delay the closing date by a few days or weeks. A residential real estate professional may be able to help you resolve problems with a title or answer any questions that you have about the process of buying a home.