Purchasing title insurance is one of the most important steps when buying a home. A title insurance policy will protect you and your lender in the event that any issues should arise with the title of the house. Typically a title policy will be ordered right after the purchase agreement is signed. The amount of time it takes for the title to be cleared by your title company will ultimately depend on a few factors, but generally title searches can be wrapped up in just a few days.
Title Search and Examination
During the title search, a title company will meticulously go over public records to determine who is the proper title owner and work to discover any defects in the title, including liens, levies and encumbrances. Property data is publicly accessible, but experienced title companies will be able to identify errors, forgeries, and other matters that would otherwise be overlooked. Scouring this information will protect you from issues arising with the title after you’ve purchased the home.
Title Curing Period
The curing period of the title search process occurs if a title agent has found unresolved issues in their search. The title agent will work to remedy these issues during this timeframe. For example, if public records show a lien on the property, the agent or officer will attempt to get a statement of payment from the lien holder or else arrange to pay off the lien. Wrapping up these loose ends is necessary in order for a title to be cleared.
Issuing the Insurance Policy
If all the issues from the curing period have been settled, the title company can determine the ability to insure the title. If there are any major defects discovered on the title, you will be made aware of these before you close the transaction. If the title company determines the title to be insurable, they will issue a policy of title insurance. Certain exceptions can be written into a title insurance policy if there are certain issues that the homeowner is willing to accept the risk for.
How Long Does a Property Title Search Take?
A title search can take anywhere from a few hours up to five days to complete. There are several factors that can affect the time frame, including:
- The number and availability of documents that need to be reviewed
- The age and transaction history of the property
- The presence of any unresolved liens or other title issues
- The type of property and nature of the transaction
The property title search is only one part of the process to clear a title, so even after the property title search has been completed, you will likely need to wait for the title to be completely cleared.
At Scott Title in Red Bank, NJ, we will answer all of your questions and keep you informed during every step of the title search process. We have built a reputation for conducting rigorous, thorough and accurate New Jersey property title searches. Our in-depth research sets us apart from others in our industry. Contact Scott Title Services today to learn more about our services.