In real estate, a seemingly minor detail can have far-reaching consequences. This is why it is essential to gather as much up-to-date information about a property as possible.
What is a Current Owner Search?
A current owner search is a thorough investigation of a property’s ownership history from its last purchase to the present. It verifies the owner, identifies liens, mortgages, judgments, and tax status, and obtains the vesting deed. Let’s break this down.
On a typical current owner search, you can expect the following:
- Owner information: The full name and address of the current owner, ownership type (individual, corporation, trust, etc.), and date of purchase. It also includes the chain of title back to the most recent full-value deed.
- Liens and encumbrances: Mortgages, liens (property tax, mechanics, judgment), easements, and other encumbrances that affect the property’s use. This includes running all names found in the title and any documents connected to the property, like notices, affidavits, modifications, and subordinations.
- Tax status: Property tax assessment, unpaid taxes, and tax liens.
- Vesting deed: Ownership structure (joint tenancy, tenancy in common), deed information (date, grantor, grantee).
- Additional information: Zoning, building permits, property records.
Why is Current Owner Search So Important?
A current owner search is essential for a variety of reasons. With it, you could avoid legal disputes, end up paying thousands of dollars more than you expected, or save time on a property that you are unable to buy.
What if you discover that the previous owner made significant structural changes without obtaining the necessary building permits? This could lead to a legal nightmare.
Building codes exist for a reason – to ensure buildings’ safety and structural integrity. If the previous owner violated building codes, you could be liable for any resulting problems, like structural defects or safety hazards.
Not only could you face legal penalties, but you might also have difficulty selling the property in the future. Potential buyers may hesitate to purchase a home with a history of building code violations.
Building permits is just one example. Unpaid taxes or an undisclosed mortgage can also land you in hot water. You could be liable for the unpaid taxes; at worst, the property could be at risk of foreclosure. Sometimes, the taxing authority might even have a lien on the property, preventing you from selling it or obtaining a mortgage.
And let’s not forget the hidden costs of time. A property with undisclosed issues could waste precious months, even years, of your life as you navigate legal complexities and financial burdens. By neglecting a current owner search, you’re gambling with your peace of mind and hard-earned money.
Protecting Your Investment
A current owner search protects against hidden risks and safeguards your long-term investment. Buyers can make informed decisions by thoroughly investigating the ownership history, identifying any encumbrances or legal issues, and avoiding the pitfalls that could devalue the property.
For instance, if a property has a history of frequent tax liens or unresolved lawsuits, these issues could affect its resale value and limit your options if you decide to sell.
A current owner search ensures that you’re purchasing a property free from unexpected liabilities and provides confidence that your investment is secure. This simple yet crucial step can save you from future financial burdens and help preserve the value of your real estate investment.
Let’s Talk
Why take the risk? A current owner search is a small investment that can yield significant returns in peace of mind and financial security. It’s your safeguard against the hidden dangers lurking in every property transaction.
Contact us today for a comprehensive residential title search.
