More often than not, the word title appears in real estate transactions. For a homebuyer to have faith in the property he or she is purchasing, the title must be clear. “Clear title” is the designated reference term that indicates that the proprietor or owner of a property actually owns it freely and at his discretion. This term is used to indicate that the property is free and clear of any liens, such as previous mortgages or levies from creditors. A clear title gives the owner of a piece of real estate sole and legal ownership of the property.
Purchasing title insurance is one of the most significant steps a prospective homeowner can take. If the seller does not have a free and clear title to the property, the title ownership protects both the homebuyer and the lender from unfavorable circumstances. After the signing of the purchase agreement for a home, your agent will typically initiate a title insurance policy.
Typically, clearing the title insurance policy takes between ten and fourteen days. However, it is uncommon for the period to last longer than two weeks. This period can be affected by a number of different factors. In order to clear a title, the title company, through a title professional, conducts a thorough search and inspection. This evaluation is used to determine the exact course of action required to defend the title. Because of this, title insurance policies may have longer application periods than other types of insurance.
Typically, the title search involves a meticulous examination of public records. This is done to establish the property’s legitimate owner. It also identifies and emphasizes any flaws in the titles. This article refers to these as encumbrances.
If title-related issues remain unresolved, a curing period is implemented. During this time, the title company works around unresolved issues and attempts to resolve them. As this period involves the title company, the majority of homebuyers never see or even learn about the quantifiable work that went into clearing the title of their property.
Before acquiring a property, its title must be free of encumbrances. As previously stated, this clearing of a title may take up to a couple of weeks. This extended duration permits title searches, examinations, and even cures; all processes that contribute to clearing the title.