Take a Title Peek Before You Put Your Name On The Dotted Line!
Most basic title searches can be done online, by accessing county records. Sometimes you have go to the court houses but everyday more and
more are going online, and some even to the point you can record a memo or agreement to protect your contract right from your desk.
You can also look for liens and judgments that might “cloud” the title to the property. The records are public, so access is free.
Rather than spend the $50 to $120 it typically costs to hire a title search company; you can do research on a property’s title yourself.
Now you can not close with a search you do yourself, but you know what’s there so you can make an intelligent offer.
As you build rapport with our investor friendly title companies once you prove yourself that you close deals with them, they will do
a cursory search for you. The ones we use, do it off a phone call, while we are driving to the property.
Its just a title peek… is there anything glaring I need to know about?
The girls in the title office… gladly do it, because they know if we get the deal, they get the closing.
If you are doing it yourself at the beginning or it’s a weekend and the title company is closed…
By searching government records, you can identify the chain of title that shows the history of everyone who has bought and sold the
property you’re interested in. You can also look for liens and judgments that might “cloud” the title to the property. The records are
public, so access is free in most counties, some counties charge a monthly fee and you get deeper access.
If you’re looking for more through answers a title, the services of an attorney or title search company are recommended, as they have
experience in reading titles and are trained to see the land mines on a property’s title.
Search Online
The first step is to find out the county where the property is situated. Then go to that county’s website to start your records search. Look for
the page for the county tax assessor’s office. As part of assessing property taxes, the office keeps the records for current ownership of the
property and the title transfer to the current owner. The county deeds office records every transaction where a title deed changes hand. It may
have information online about earlier title transfers, as well as look for open tax bills, unpaid code enforcement liens and any recorded liens
against the owners…
Once you do it a few times it’s a ten-minute task, that you can even outsource to a VA or automate in your podio app.
Browse around county courthouse…there is gold in them there walls!
Most counties have all their files available over the internet. If you can’t find the information online, you will have to visit the county offices.
Your county deeds office and tax assessor’s office will also have hard copies of their records.
What Do You Look For?
- Get the names of every grantor and grantee – the persons giving up and taking title respectively – in the chain of title.
- Look for any liens filed against the property, such as mortgages, tax liens and liens for unpaid debts. The liens stay with the property
when the title changes hands, unless they’re paid off. - Check the owners’ names in the county court records to see if they have any court judgments against them. The judgment could
lead to a lien on the property. Most judgments attach to real property in what is call a blink of an eye. For example Mary has
passed away and left the house to her son Joe, and Joe is a junkie deadbeat that has open judgments against him, the second
Mary passes away, Joe Becomes the legal owner, even though they have go through probate, those judgments on Joe, attached
to the property, and need paid at settlement. - Has the current owner kept the property taxes up to date? If not, the county will look to you to settle them if you take ownership,
so you need to work that into your numbers - Are there easements on the property? An easement gives someone other than the owner a right to use it. For example,
beachfront property might come with an easement allowing people to walk across the sand even if you object. - Note any gaps or possible errors in the record. If there’s a missing or incorrect name on a deed, for example, it might indicate
the title isn’t clear. You may need professional help to determine what you need to clear up/.
When buying a property always pay for a title search and title insurance even if you are paying cash, its cheap in the long run, and
you will have a property that you can sell easily in the future… NO DO IT YOURSELF CLOSINGS…. YOU ARE ONLY PEEKING
AT THE TITLE BEFORE YOU CONTRACT AND USING A REAL INVESTOR FRIENDLY TITLE COMPANY WHEN YOU CLOSE
AND PAY WITH REAL MONEY!