A title search checks the property’s history, often 50 years back. This process ensures that the seller can legally transfer ownership of the property.
Some buyers may assume that a title search is only necessary for older properties when purchasing real estate. That is not the case. Even with new properties, there may be hidden risks involved if you opt to skip a title search.
Do not assume that a new property is free from title issues
If you forego a title search, you may inherit a range of issues, including:
- Undisclosed liens: A contractor or supplier might have filed a lien against the property due to unpaid work or materials.
- Errors in public records: Clerical mistakes or omissions can lead to title defects.
- Fraudulent activities: Sometimes, sellers may intentionally conceal information about the property’s history.
- Boundary disputes: Disputed boundaries can lead to legal battles and financial losses.
- Outstanding taxes or assessments: Unpaid property taxes or assessments can become the buyer’s responsibility.
A comprehensive title search can help identify and resolve these problems before you finalize the purchase.
In New Hampshire, title searches are part of the real estate process. State laws do not require them, but they are highly recommended.
Seeking legal help can be crucial
The security of knowing that your new property is free of hidden liabilities can be a small price to pay. When in doubt, it is always wise to consult with an attorney during real estate transactions. This way, you can safeguard your real estate investment.