SOUND ADVICE

Welcome Home received a reader question about title searches — how they’re conducted and what they may reveal. Coldwell Banker Realtor Carollen Speer consulted with New London-based real estate attorney Korrin N. Amaral to provide expert insight into title searches:

Before closing, the buyer’s attorney is responsible for obtaining a title search most commonly issued and insured by their title company. The title search is a thorough examination of official records, including town land records and judicial records. Upon completion of the search, the title company will issue a title commitment that outlines the terms for the issuance of a final title policy upon closing. If you are a buyer using a lender to purchase, then your lender will require the seller to clear all issues on title, also known as “requirements,” before closing and the issuance of a final title insurance policy. These cleared requirements will not transfer to the buyer upon closing.

Generally, the search will confirm property ownership, legal description and list any restrictions and encumbrances against title. Said requirements may include rectifying or opening an estate through probate court if the prior owner is deceased, and clearance of various liens recorded against the property, including but not limited to, mortgage liens, tax liens, judgment liens, or mechanic liens. The majority of title issues typically do not prevent a closing but may significantly delay a closing date, ultimately leading to the deal falling through. Should the seller not be able to resolve requirements before closing, the property may be considered an ‘unmarketable title,’ and depending on the purchase and sales contract, the buyer may be able to walk away from the sale with their earnest money deposit.