Buying commercial real estate can be exciting but comes with much pressure. There are many plates to spin, from securing financing to negotiating deals.
One of the best ways to remove stress from the process is to partner with the correct title search company. Today, it means choosing a company committed to advanced technologies like artificial intelligence (AI). Let’s look at why.
Why Title Search Firms Are Embracing AI for Your Commercial Deal
Forward-thinking firms increasingly leverage AI to streamline processes and deliver key client benefits. This is true across sectors, with 83% of companies claiming that AI is a top priority in their business plans.
The title search sector is no exception here. As a traditional industry, many title search companies have been wary of new technologies, AI included, but the ones that have embraced it are reaping significant rewards.
Let’s delve into why AI is becoming a game-changer in a title search:
1. Enhanced Accuracy and Efficiency:
AI can sift through vast public records with incredible speed and precision. This minimizes the risk of human error often associated with manual searches, ensuring a more accurate and reliable title report.
2. Faster Turnaround Times:
Traditional title searches can be time-consuming, potentially delaying your deal. AI automates many tedious tasks, significantly reducing turnaround times. This allows you to move forward with your transaction quicker and capitalize on fleeting opportunities.
3. Deeper Insights and Risk Identification:
AI-powered title search goes beyond simply identifying potential ownership issues. Advanced algorithms can analyze historical data and legal precedents to uncover hidden risks you might miss in a manual search. This proactive approach provides valuable insights for informed decision-making.
4. Cost Optimization:
AI can improve the efficiency of title searches by automating repetitive tasks and reducing manual workloads. This translates to potential cost savings for you, the client.
5. Continuous Improvement:
AI is constantly learning and evolving. As the technology processes more data, it becomes adept at identifying patterns and anomalies, improving the accuracy and efficiency of title searches over time.
How Does AI Title Search Work?
The AI title search process begins with thoroughly reviewing the property’s historical records, including deeds, mortgages, court judgments, and tax records.
By examining these documents, the title search traces the property’s chain of ownership, ensuring it has legally changed hands without disputes.
A vital element of a title search is the title abstract, a concise summary of the property’s history compiled by a title abstractor.
This abstract highlights essential details, such as previous owners, recorded liens or encumbrances, and significant transactions. It serves as a roadmap, guiding the title examiner through the property’s legal history.
Next, a title company specialist uses AI technology to scrutinise the abstract and other records during the title examination. They look for unresolved issues like unpaid taxes, undisclosed heirs, or legal disputes that could cloud the title.
If any problems are found, they must be resolved before the property can be sold. This might involve negotiating with creditors to remove liens, settling disputes through legal channels, or obtaining missing documentation to clear the title.
Once the title is clear, the buyer typically purchases title insurance. This policy protects the buyer and lender from future claims or legal issues related to the property’s title.
The Process
- Chain of Title:
Details the historical transfers of a property’s title, showing who bought the property and when. This information can be obtained from public records, usually found in the County Clerk’s Office or privately owned title plants with comprehensive property data.
- Tax Search:
This step verifies the status of real estate taxes on a property, uncovering any unpaid taxes from previous years and checking for special assessments. Outstanding taxes can pose significant financial risks to new owners.
- Inspection:
Checks for encroachments or other issues that could affect the property’s title. Inspectors verify property size, easements, and whether the property is occupied.
- Search on Name and Judgment:
This search identifies any unsatisfactory judgments against previous owners or the seller. Judgments must be cleared before the property can be transferred. These judgments could include property damage, unpaid rent, contractor liens, building code violations, and personal injury claims.
As you can see, the process isn’t too dissimilar to the traditional method. Still, because AI can sort through digital data faster and more accurately than humans, you can benefit from it.
Choosing an AI-Empowered Title Search Partner
When selecting a title search company, inquire about their use of AI technology. Look for firms that leverage AI to complement, not replace, the expertise of experienced title search professionals.
The ideal scenario combines human knowledge and cutting-edge technology, ensuring a comprehensive and efficient title search for your commercial real estate deal.
Wrapping Up
Buying commercial real estate is a significant investment, and you deserve a smooth, stress-free process.
Partnering with a title search company that uses AI can help you achieve this. AI-powered title searches are faster, more accurate, and more reliable, helping you close deals confidently and efficiently.
At Pippin, we prioritize using the best technology to achieve the best results, and today, that means advanced AI-driven title search solutions.
Ready to revolutionize your title search process?
Get in touch. Experience the future of title searches with us today.
