Purchasing a home involves a lot more than just finding the property that you want to purchase and putting in an offer. Once that part is done, the property does into escrow, and there are a number of important things that must be done before the transaction can close and you can receive the keys to your new home and officially become the owner. One thing a homebuyer will need to do while the home is in escrow is work with a title company to purchase title insurance. Before title insurance can be issued, an extensive title search will be conducted. Some of the reasons for title search services include:

Ensure the Seller Has the Right to Sell the Property

One of the main goals of a title search is to verify that the seller has the legal right to sell the property. During a title search, a number of public records will be inspected to ensure that the seller currently owns the home. In addition, a title search is used to make sure that the seller is the only person who has a claim on the property. This is done so there are no issues in the future-- the last thing anyone wants is to have someone come forward down the road and say that the house had been jointly owned or inherited and was not sold legally.

Look for Liens or Money Owed

Another major function of a title search is to determine whether or not there are any liens attached to a home. Since most people finance a purchase of a home with a mortgage loan and move before the mortgage is paid off, the mortgage company will have a lien. However, other liens, such as for back taxes, HOA fines and assessments, second mortgages, or home equity loans will be discovered during a title search. These things will need to be paid off before a house can be sold so the new owner is not left responsible for paying them.

Types of Restrictions or Allowances

Every home is unique and so are the lots that they are built on. During a title search, a title company can discover whether the property has any public access agreements in place or easements. It is important to know these things before you move into a new home. A title search can also confirm if a home is within a homeowners association that has its own set of rules that must be followed.