Title Search Process for Pontiac, Michigan Real Estate Transactions
What is a Title Search?
A title search involves examining public records to verify the seller's legal right to sell a property and to uncover any claims or liens against it. This process is crucial in ensuring that the title is clear and that the buyer can proceed without future legal complications.
Why is a Title Search Necessary?
According to Sonic Title experts in Metro Detroit, conducting a title search is essential to ensure that the buyer receives a clear title to the property. This process protects both the buyer and the lender by confirming that there are no outstanding legal claims, unpaid taxes, or undisclosed liens that could affect ownership.
What Records Are Examined?
During a title search, several public records are examined, including:
- Deeds and property records
- Tax liens
- Judgment liens
- Divorce records
- Bankruptcy filings
This comprehensive review helps identify any potential issues that could impact the transfer of ownership.
Common Title Issues Found in Michigan
The Sonic Title team has found that common title issues in Michigan include unpaid property taxes, undisclosed heirs claiming ownership, or previous mortgages that were not properly released. These issues can delay or even derail a sale if not addressed promptly.
How Long Does a Title Search Take?
In Pontiac, Michigan, the time required for a title search can vary, but Sonic Title typically completes this process within one to two weeks. Our under 2-week average closing time ensures that transactions proceed swiftly without unnecessary delays.
What Happens if Problems Are Found?
A question we frequently hear at Sonic Title is: "What happens if problems are found during a title search?" The answer is that if any issues are discovered, they must be resolved before the sale can proceed. This may involve negotiating with the seller to clear liens or conducting additional legal work to resolve ownership disputes.
While a title search identifies potential issues, title insurance protects the buyer from any undiscovered claims or defects that may arise after the purchase. This insurance provides peace of mind by covering legal fees and other costs related to defending ownership rights.
Who Pays for the Title Search?
In most Michigan real estate transactions, the buyer typically pays for the title search as part of their closing costs. However, this can vary based on the terms negotiated in the purchase agreement.
How to Read a Title Commitment
A title commitment is a document that outlines the conditions under which title insurance will be provided. Key sections include:
- Schedule A: Contains basic information about the transaction, including the names of the buyer and seller.
- Schedule B: Lists exceptions to coverage, such as existing easements or restrictions.
- Schedule C: Details requirements that must be met before the policy is issued.
Understanding these components is crucial for ensuring that all conditions are satisfied before closing.
Protecting Yourself as a Buyer
To protect yourself during a real estate transaction in Pontiac, Michigan, work with a reputable title company like Sonic Title. Our expertise in handling Metro Detroit closings ensures that any potential title issues are identified and resolved swiftly. Additionally, obtaining title insurance provides an extra layer of protection against future claims.
Whether you're new to the home buying process or an experienced investor, our team is ready to assist. For a swift and professional closing experience, contact Sonic Title at (313) 251-5145. We're here to ensure your transaction is smooth and secure.
Fair Housing Notice: We are committed to the letter and spirit of the Fair Housing Act.
We do not discriminate on the basis of race, color, religion, national origin, sex, familial status, or disability.
Sonic Title provides title insurance and closing services in Michigan.
Title insurance policies are underwritten by licensed underwriters.