Title examination is a key component to a real estate transaction. A proper examination ensures the property is fit for sale. A Fort Lauderdale title examination & insurance attorney can perform a title examination for a real estate transaction.
Title examination occurs while a property is under contract. The examination should discover any encumbrances that could disrupt the sale of the property. Reviewing the chain of title, or history of ownership, determines whether the property’s ownership may be legally tied to anyone other than the seller. The examination will reveal any actions needed to be taken to secure good and marketable title.
A good and marketable title is one that is free from encumbrances. An encumbrance is any right or interest in land held by someone other than the owner. Encumbrances decrease the value of the owner’s title. A good and marketable title is reasonably certain not to be called into question in the future. If a seller is unable to deliver good and marketable title, the purchaser is generally not compelled to execute the contract.
When an examination has concluded, it should be known in whom title is currently vested, all encumbrances affecting the property, and any defects that must be resolved. This information will be summarized in a commitment. The commitment is used to create an agreement to issue a title insurance policy. Requirements stated in the commitment must be satisfied before a policy will be issued.
Without an examination, a buyer could end up purchasing a property that will result in litigation. The South Florida real estate lawyers at Schecter Law have years of experience to prevent surprises from occurring when purchasing a property. If something is found that could render title unmarketable, the buyer can benefit from a real estate attorney negotiating with the seller to rectify the situation.