hen you purchase real estate recording office to see if
estate, real estate title there are any problems with your
insurance companies will title before you buy the real
insure your real estate against estate. If it finds any problems
any “defects” in the title. What (OK, “defects”, if you please!)
this means is that if your in the title, then it will make
ownership of the property turns an exception to its coverage with
out to be in any way inferior to respect to those particular
what you bargained for when you defects. In that case, you may
bought the property and you decide not to purchase the
suffer losses because of it, the property after all. That’s fine,
title insurance company will make as long as your real estate sales
up your losses. A common way that contract obligates the seller to
this can happen is if, for provide “insurable title” prior
example, you buy real estate from to the closing of the sale.
a seller who still has a mortgage
on the property that you didn’t It sounds like a foolproof system
know about. After you buy the doesn’t it? But of course it’s
property the person who sold it not. The title insurance company
to you stops paying off the is normally not going to check
mortgage and the bank forecloses the title to the property all the
on your property and either way back to 1678 when the land
throws you off or makes you pay was granted by the Spanish Crown
off the mortgage yourself. This – they’re only gonna go so far
is where your need to make a back, maybe 60 years, and just
claim to your title insurance take a chance that no jerk is
company to reimburse your losses. going to come along and challenge
your title based on a remote
Of course, the title insurance claim. Another loophole is that
company will check the local real the law recognizes some
legitimate claims over property contracts. But if you get your
cannot be recorded because they property properly insured by
are not based on any written closing, that will be the title
instrument such as a deed. Also, insurance company’s problem, not
some states will not record yours.
certain documents such as
short-term leases or sales
About the Author:
Real Estate Law in Plain English explains real estate law without the legalese.
Read more articles by:
Bobby Carnes
Article Source: www.iSnare.com 
