When we refer to “title” in a real estate transaction, it refers to the process in which the legalities around a property are examined to make sure the seller has complete ownership of a property and the right to sell it, the legal description is compared against the property for sale, and any other entities who may have legal and continuing access to the property are identified.
Title insurance is also provided by the title company and protect the buyer and the lender (if applicable) against any defects in the title. For example, if the buyer was not made aware of the power companies’ need to a keep a 500 square foot section of their property clear for utility access which rendered that percentage useless for development, depending on the circumstances, title insurance would provide relief to the buyer for that loss of use if that was not identified in the title report.
You will be provided a copy of your title report after the contract has been accepted by both parties and before the property changes hands. Buyers are usually presented with the “clean” report which already has as many items cleaned up as possible. Sellers may be called upon to clean up any of the discrepancies such as ownership and lien issues.
Title is just another importance facet of the real estate transaction. Rest assured I review the title report with my clients so they can have an understanding of exactly what they are purchasing and any potential issues.