Real Estate Terms: Title Search
Just about every contract of purchase and sale I’ve ever seen has included a subject clause that says that the offer is subject to the Buyer’s review and approval of a title search.
A title search is a government issued document that shows who has what rights to the property. In addition to who the owner is, what kind of ownership they have and who they have a mortgage with, there are a wide variety of things that can and do appear on title which may affect the property’s use or value. Sometimes, there are things on the title search that prevent the property from being sold at all until they are dealt with. However, such things should be dealt with at the time of listing so the Buyer or their Realtor rarely have to.
As a Buyer, you, your Realtor and your Lawyer will need to make sure that there is nothing on title that could be a bad surprise for you down the road and this is why we make the offers subject to the review and approval of the title search.