Chain of Title:
The "Chain of Title” is simply a history of the ownership of a
particular
piece of property. It is the continuous record of ownership. An abstract
is a condensed
history of those interests. The chain is part of the title examination
process.
Tax and Assessment Search:
This is a search to determine the present
status of general
real estate taxes against the property. The tax search will reveal if
taxes are current or
whether any taxes are past due and unpaid from previous years. In
addition, the Assessment
search will indicate the existence of any special assessments against
the land, and if so,
whether or not these assessments are current or past due. A due and
unpaid tax or special
assessment is a prior lien or claim on the property above all matters.
Judgment and Name Search:
One of the most important parts of the title
search is to
determine if there are any unsatisfied judgments or involuntary liens
against the seller or
previous owners. These liens can and do attach to real property.
A judgment is a general lien against the debtor’s real estate and
constitutes security for any
money owed under the judgment. The real estate can be sold to satisfy
the judgment. It is
extremely important to be sure that title is not subject to judgments or
involuntary liens
against the seller or previous owners. Title insurance provides this
protection.
Report on Possession:
Often inspectors under certain insurance coverages
are sent to
look at the property to verify the occupation, construction status,
check the location of
improvements and look for evidence of easements. Sometimes a survey is
required.
The purpose is to supplement the information from the title search. Any
buyer of real
estate is assumed to have notice of all property matters shown in the
public records as to
that real estate, but not necessarily unrecorded matters.
The right of way for a road or power line, or an easement for a driveway
may limit ownership
rights on a piece of property.
Article used with permission from
Pacific Northwest Title
