In this six-part series from Maverick, we will describe the process that a title company uses to ensure a buyer’s property’s title is clear for the issuance of a title insurance policy.
Part 2: The Title Examination
A couple weeks have passed since Patty Purchaser’s offer was accepted. She’s been trying to keep busy, loading up her Pinterest board with décor ideas for her soon to be new home. But her mind keeps wandering off, wondering how the Title Agency is progressing.
Fortunately for Patty, the Title Agency team are experienced and dedicated to what they do. After the searcher scoured the records recorded at the County Clerk’s Office and ordered the additional searches, the pertinent documents were passed along to the Title Examiner for review.
The first thing the Title Examiner noticed was that the Vesting Deed (the deed that conveyed title and ownership to the current owner), conveyed the property into a Trust. She made a note to include a request for a copy of the Trust in her report.
Another point of interest was a clause citing a restriction that the property could only be used for residential purposes, and that any buildings built on the property must be set back from the road at least twenty feet. Fortunately, the only building on the property was a single-family home and from the look of it, it did abide by the setback. She made a note to confirm the distance from the road.
As the Title Examiner followed the deeds back in time, she continued to make note of each Deed Reference (the Book and Page or Instrument Number the deed was assigned), the Grantors (those conveying the property), the Grantees (those acquiring the property), and carefully compared the Legal Descriptions and Being Clauses in order to establish a clear Chain of Title.
With that complete, the Title Examiner moved on to the open liens. There was an open mortgage recorded ten years ago to the current owner. She would need a payoff letter prior to closing. Another mortgage came up as well, but this was to an individual sixty years back in the Chain of Title. It was likely that this lien was actually paid off and a Mortgage Satisfaction was never received. Given the timeframe, she would accept an Ancient Mortgage Affidavit as a curative to this title defect.
Next, she reviewed a Utility Easement which allowed the local electric company to traverse the property in order to perform service on the lines. With that done, she looked over the remaining searches, adding to her sheet of notes.
Mission accomplished! With the Chain of Title established and the important information secured, she began drafting her report.
Stay tuned and follow Maverick Title Services for this six-part series:
- Part 3: The Title Report
- Part 4: Clearing Title
- Part 5: The Closing Table
- Part 6: Delivery of Title
