Purchasing a property is a personal milestone for many. It is usually with long-term plans, such as building a house or starting a business. But amid the bustle of haggling over prices and signing contracts, many buyers commit a very serious oversight: they neglect title checking.
Title check is an assurance that the individual selling the property is the rightful owner of it and that there are no skeletons in the cupboard. It is possible to purchase property without having a title search, but it’s like jumping into a pool without making sure that there is water in it.
You put everything at risk: money, your peace of mind, and even the right to possess the property sometimes. Therefore, we put five convincing arguments as to why neglecting a title search can be a disaster for you:
You Could Inherit Someone Else’s Debts
All properties are likely to have financial encumbrances against them- mortgages, unpaid taxes, utility bills, or even contractor bills. These liens do not magically vanish just because the property was sold. When purchasing a property that has such encumbrances, you may end up inheriting them without even knowing.
Banks and authorities do not require knowing who the new owner is- they require someone to pay the pending dues. That somebody becomes you.
The title check examines if there are any registered encumbrances and pending liabilities. It makes sure that the property you are purchasing has clear financial records.
You Might Not Be Buying from the Real Owner
When you purchase a property, your initial premise is that the person selling it to you is the legal owner. Sadly, it is not always the case. Most often, fraudsters pretend to be owners with the help of false documents. In some rural locations, the land records may not be digitised.
This makes verification even more important. You may later discover that the sale was not known by the true owner, and he can sue to recover the property. The courts might order a cancellation of your purchase, and you will have a hard time getting your money back.
A land title search checks ownership history in the local registrar of deeds. It ensures that the person selling the property has all legal rights to do so.
The Property Could Be Involved in Legal Disputes
Legal disputes concerning ownership of property, boundaries or inheritance are very common. There are cases where sellers attempt to sell such properties within a short time, at poor prices, to unwary buyers.
Ignoring the title check may result in your buying a property that is already disputed in court. When this occurs, your property is blocked, your investment is held up, and you waste years of your life in court hearings.
A valid title search checks all the civil court records and finds whether there are any pending disputes over the property. This saves you from the emotional and financial burden of litigating a court battle over several years of your life for your own land.
There May Be Boundary Conflicts
The boundaries establish what is yours and what is not. Buying land that is covered by another person or having legal disputes over the boundaries is a common problem buyers face.
Boundary problems cause delays in the construction, resale, or registration of the property. Title check involves on-site measurements and comparison with previous survey reports. This will make sure that the physical boundaries of the land are according to the legal records.
It Will Be Harder to Get a Loan or Sell Later
In future, if you expect to use your land as collateral, title certainty becomes essential. Banks and other financial institutions also do their own title search before accepting any mortgage. In case they detect any inconsistencies, they will decline your loan request.
In the same way, if you ever need to sell the property, prospective buyers will require a clean title to proceed with the purchase. When purchasing the property, you may not have conducted the check. This will make it hard for you to ascertain the legitimacy of the property, creating issues in the deal.
Title check gives you a documented trail of ownership. Thus, your property is regarded as low-risk by lenders and appealing to buyers.
Conclusion
Is it possible to purchase a property without a title check? Yes- but it’s a risky move. Whether it is ownership issues or pending debts, the stakes are just too high.
Title check is not an optional procedure; it is the basis of a secure and carefree investment in any property. Title check covers you against fraud, secures your money and ensures that everything is right.
Also Read: Why Every Commercial Property Should Have a Locksmith on Speed Dial
