Home Buying in Rifle>Question Details

Rm, Home Buyer in Rifle, CO

What does it mean to have a clear title? What is title insurance for?

Asked by Rm, Rifle, CO Mon May 2, 2011

Help the community by answering this question:


The title search is done to clear title so it is available for the new buyer to take title. Title insurance is also a safe guard against hidden defects in title!!

Title researchers, will retrieve the records on a property, such as transfers, liens, judgements, and other recorded data. The results are compiled into a report, called a title search. This report can be used to understand the status of the property, such as if there are liens against the property, or ownership status. Many homeowners are now checking their own homes title status on a regular basis, to make sure no liens are attaching to the property. Leins are the most important part of a title search. The title researchers will run a lien search for the property, and list all liens recorded against the current owner of the property. This includes both mortgage liens, and all non-voluntary liens such as tax liens, contractor liens, etc.

Reference Link: http://titlecompanies.net/
1 vote Thank Flag Link Thu Jun 11, 2015
Clear Title means there are no liens or encumbrances on the property you are buying. Someone goes to the courthouse to do a search for any recorded documents to make sure no liens have been filed and recorded on the property prior to closing. You can't sell a property with liens outstanding.

Title Insurance is insurance that cover any errors or mistakes or fraud with the title of the property. Your lender will require enough title insurance to cover the amount they have loaned you. You can buy the optional coverage to protect your amount you put into the property as down payment.
0 votes Thank Flag Link Mon May 2, 2011
Clear title means when you are home buyer purchases the property there are no liens.

Your buyers agent OR title company should be discussing all the terms and questions you have

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes Thank Flag Link Mon May 2, 2011
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