Why do I need a title search? This seems to be a frequently asked question by those involved in the real estate industry and real estate transactions.
A title search is a full and complete record of all matters filed of public record that may affect title to a particular piece of real property. This includes deeds, mortgages, liens, judgments, tax records, financing statements, assessments, etc. Title searchs are usually conducted when real estate is being conveyed from one party to another.
The purpose here is to determine whether the party transferring the real estate has and can convey good and marketable title to the property. Generally, if the seller can convey good title to the buyer, the buyer can convey good title to a lender as security. title searchs are also conducted when property is not changing hands, but when a property owner wishes to secure a second mortgage or refinance an existing mortgage. The purpose then is to determine whether the owner can, at that time, give to the lender good and marketable title for their security interest.
The search and resulting report do not, in and of themselves, indicate clear title. They are simply a report of information contained in the public records. A duly qualified and licensed attorney is the only party in North Carolina authorized to advise on the actual status of title.
The point of this is to make the reader aware of the situation. Monitor the nature and kind of company with which you do business. Taking shortcuts is doing you no service. Dealing with a reputable title searcher, a qualified attorney and title insurance company can conclusively offer you the title protection that is vital to all in the real estate industry.