The Importance of a Secured Title
The last thing a buyer wants to discover is that what they bought isn’t theirs technically. This is called a defective title.

One of the items purchased during the closing process is title insurance. If you have a mortgage on the property, the lending bank will insist upon it. Title insurance protects buyers and lenders from problems with ownership.

In the process of purchasing a home, prior to closing, banks require a title search be made for the proposed property being bought. If there is a problem including unpaid taxes, liens, other owners of the property and such, these issues will have to be resolved prior to the closing. The contract to purchase the property should include a clause giving the buyer the ability to walk away from the purchase without penalties.

If you are purchasing a property from an individual who purchased the property before you, most times the title will not be a problem. But in the event that you are buying from someone who inherited a property, there are issues surrounding probate that will need to be reviewed, such as if they failed to release the estate’s claim to it, which could lead to a matter to be litigated in court.

Your Inspector
Your inspector should be someone very knowledgeable as well as an individual with great integrity. If the home inspector uncovers a structural flaw, it will open up the option to renegotiate the price or walk away from the sale. Also, your inspector should:

Be able to advise you that you are sitting in a flood zone or on a low water table.

Be able to detect infestations such as ants, rodents, squirrels, and of course wasps and termites.

Be able to know if the current owner has built an unpermitted addition to the home. Always make sure that the owner and contractor held a building permit for the work performed.

If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.

Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.