I DON'T NEED NO STINKING TITLE COMMITMENT!

 


Why Do  I Need To Get A Title Commitment?

 

I get this question from my clients a lot. The cost of a real estate title search & commitment is minuscule compared to the stress and expense of buying a property with a cloudy title.

A seller will assert that in the 50 years they’ve owned the property, there was never a mortgage, and there are no current or prior issues, so why pay for a Title Commitment?

A buyer will defend personal relationships, stating they have known Mr. or Mrs. Property Owner for years, and if they say the title is clean, why question it?

There are many, many reasons to get a Title Commitment and very few to NOT get one.

-        Credibility and Confidence: 

     For sellers: a clean Title Commitment will provide invaluable peace of mind to a buyer. 

     For Buyers: If a property does not have a clean title, I wouldn't recommend purchasing, here's why. 

-         A Title Search might reveal forgotten mortgages. 

     For Sellers: You could have taken out a mortgage years ago that was never released.  

     For Buyers:  If money is still owed on an old mortgage, the amount would be transferred to you as the new owner once purchased.

-       Title Search could also uncover any liens on the property. 

     For Sellers: It's possible if you ever encountered a rough financial patch, businesses might’ve placed mechanic liens on your property. 

     For Buyers: If any liens exist, you would be responsible for paying them as the new owner.

-       Title Searches can also bring to light any potential, unknown beneficiaries. 

     For Sellers: It’s a far-out scenario, but you could discover unknown heirs to your property children you might not be aware of. 

     For Buyers: If an unknown heir did come into the picture, guess who you now own a property with.

These seem like extreme, unbelievable cases, but regrettably, they happen from time to time. Prevent any surprises by getting a title commitment from a reputable Title Company. You can’t put a price on peace of mind, especially when the consequences can be devastating.

So, the next time you buy or sell property, and you want to save a few bucks by avoiding the title commitment…think again. Money spent to save you from headaches or financial burdens down the road is money well spent.  

If you are ever in need of real estate advice, give me at call at 765-427-5052 or email me at bneihouser@shook.com

All The Best To You,

Brad Neihouser

Cut Through The Noise. Get Straightforward Advice. 


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