Buying a home or property is a huge investment, and new property owners want to protect the money they invest in their property. Quite simply, property owners want to protect their ownership rights. Hence, it is important to have a title search conducted on the property and to purchase title insurance in case anything was missed during the title search or there is an unrecorded document.
You’ve likely heard of a title search, but what about a bring-down title search and do you need one when buying a home? We’re here to explain.
First, a bit more on title searches. A title search will give you a chain of title for the property; show any restrictions on the property, such as easements; and identify outstanding mortgages, back taxes, or outstanding liens on the property. A title search is done by searching the local land records in the town, city, or county where such records are kept for the property.
Bring-down title search
A bring-down title search describes the continuation of due diligence in an additional title search before the recording of the deed or mortgage. This search addresses the gap between the time of the original search and the recording of the deed to ensure that no liens or other claims have been placed on a property during that time before closing.
You can never be too careful when dealing with real estate investments. Plus, this extra step can give a buyer extra peace of mind in finalizing the transaction. This is also sometimes called a continuation or a take-down search.
Because a bring-down search is an additional step in the title diligence process to protect the buyer, the fee for this service is almost always paid by the buyer.
Don’t forget title insurance
Even with so much work put into title investigation, don’t forget that title insurance still plays a critical role in protecting your investment. Title insurance protects homebuyers and lenders against defects or problems with a title when property ownership transfers. If a title dispute arises during or after the sale of a home, most title insurance policies cover the common claims filed against a title, such as back taxes, conflicting wills, and outstanding liens.
Your title company will help you navigate the title search and bring-down title search to ensure you and your investment are protected in the years ahead.