How is Your Elkhart Indiana Home's "Pink Slip"?

When consumers purchase automobiles and they are paid in "pink slips" to indicate they own the vehicles. And when Home Buyers purchase real estate (or real property) "titles" are transferred.

But what happens if the Seller does not have a "clear title" to convey? Perhaps there was an irregularity in one of the past transactions involving the property. Suddenly, the home buyer may find himself or herself out thousands of dollars 0 and not owning any property.

Today, that does not happen - if a title company is involved. As title company's job is to search out every past transaction involving the property to ensure that clear title passed from owner to owner, and that the current seller does hold clear title to the property. Title company examiners trace the ownership of the property through its entire history. They make sure the title is clear. In the past, this was done manually, however, today computerized records make the task easier...and more reliable.

Besides uncovering title defects (called "clouds") relating to a property's ownership, the title searches also detect liens. For instance, suppose a contractor built a room addition to a home and was not fully paid for his work. If he filed a lien against the property, it would be on record with the county recorder - and should be discovered by the title examiner during the search. The title company would then notify the escrow company of the problem, and the seller would resolve the lien or risk losing the buyer.

Title insurance is the best way to fully protect against possible title defects. Lenders who provide financing require that buyers buy title insurance. This fully protects lenders up to the amount of the loan balance in the event title problems surface in the future. Some buyers assume that this policy protects them too - but this is not the case! Buyers must also buy a homeowners title insurance policy, and smart buyers will do so, to protect their own investment in the property. If a problem with title is discovered at a later day, it becomes the problem of the insurer, not the buyer. Title insurance is a one-time, low-cost expense that provides full protection for the buyer against future title claims for as long as he or she owns the property.

Here in Elkhart County, Indiana we have several Title Companies to choose from, and it is traditionally the choice of the Home Seller as to which one is chosen. Elkhart County, Indiana, Real Estate Agent Evelyn Johnston lets her Home Sellers know the local ones available to choose from. For more information about the process of buying or selling your home, Evelyn can be reached at Prudential One Realty or 574-304-7148.