How to Understand Title Reports

  • 12/15/21
 

A property title is an important document you need to have to show ownership of a property. It can be difficult to read a property title if you don’t know what you are looking at and what it means. Fortunately, you can easily read a title document by learning what to look out for.

When you understand how to read a title document, you will avoid making mistakes that can be costly. Here’s a look at what you need to know about Staten Island real estate.

What Is a Title Report?

A title report will outline the legal status of any property and give you information about the ownership. The chain of ownership will be shown, as well as unreleased or open mortgages.

The title report will also tell you about zoning laws, tax information, and even property value.

The Most Important Parts of a Title Report

When you get a title report, there will be a legal description, mortgage liens, and property tax information. In the legal description section of the report, you’ll see where the property is located and how it is zoned.

The property tax section will give information about any taxes that are owed on the property. For the property to be sold, all taxes must be settled.

The third section of the title report will have mortgage liens information. If mortgage liens are on the property, then the highest lien will be listed first.

How to Read a Title Report

One of the first things you should look out for in a title report is public record errors. Read carefully through the property title to see if they’re any filing or clerical errors. If there are errors on the document, it can affect the validity of the property title.

Next, you should check if there are any liens on the property. Outstanding liens on a property means that it can be used as collateral. When there are liens on a property, it can pay the previous owner’s debts.

You should also look for encumbrances in a title report. Encumbrances will not prevent the property from being transferred to a new owner. However, it does mean that someone else also has liability or even interest in the property. When such a situation occurs, it can decrease the value of the home.

Finally, you should look out for violations of building codes. Building code violations can be the most problematic issue that can surface once you have a property title for a new home.

Secure Your Staten Island Real Estate Now

Understanding how to read your Staten Island real estate property title is essential if you are ready to get a property title.

Your real estate title can give you valuable information about your property. It will prevent you from losing money since it gives essential information about property taxes, zoning laws, and property value.

If you would like to learn more about property titles or get real estate help and advice, please contact us.

 

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