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Trulia San F…, Other/Just Looking in San Francisco, CA

Why does one need a title report?

Asked by Trulia San Francisco, San Francisco, CA Wed May 29, 2013

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Fantastic Questions!

There a are a few reasons as to why a home buyer and seller would want to have a title report included in the disclosures.

1) A title report give everyone involved in the transaction the ability to ensure that there are no liens (tax, Child Support Judgements, etc) attached to the property. The great part about this is that a Title Company will ensure that when the deed of trust is transferred over to the new owners it is "clear & free" of all easements, liens and encumbrances. This allows the new owners the peace of mind that no entity or individual can come back to claim they own the property or have a undisclosed interest in ownership.

2) This gives the agents involved and buyers the opportunity to ensure the people that are actually selling the home have the right to do so, and that other individuals are not included. Example: A family member selling a home from under an elderly individual that might not be sound of mind.

3) This also will give us the history of ownership of the property as well and if at any point the property has had a notice of default attached and how the property has changed hands from the current owners.

4) A title report will go over taxes to the property. Current tax rate and taxes, supplemental taxes and it any recent assessments attached to the property.

Cheers!
George
0 votes Thank Flag Link Thu May 30, 2013
A title report will tell potential buyers and sellers if there is a lien on the property. Sometimes referred to a "cloud on the title". Example: recently I listed and sold a home in South San Francisco, the title report showed a child support lien that was paid off several years ago.

Having all the documentation to show that the lien was inaccurate, I was able to have an escrow officer remove the lien before the home went on the market, and have a clean transaction.

Another reason is sometimes there are heirs who may have also put a lien on the home because they feel that they are entitled to an inheritance once the home is sold.

Other reasons are sometimes a contractor may put a "mechanic's lien" because they did work on the property and were not compensated for the work, that one is the worse, because the contractor may want their compensation to remove the lien.
0 votes Thank Flag Link Wed May 29, 2013
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