After The Contract is Signed
1. What is a title report?
After the contract is signed by both buyer & seller, the buyer’s attorney will order a title report on the property. A title report is a statement of the current circumstances of the right to or ownership of a parcle of land. The title company will examine the public records, review the findings & render an opinion as to who the fee owner is & lists anyone else who has legitimate rights or interests in the property, such as mortgage lenders or easement holders. The report will also list any judgements or liens against the property that the seller will need to satisfy prior to closing.
2. What happens if the title is clouded?
It is the seller’s obligation to clear all liens & judgements before title can be transferred. If the seller is unable to clear the title issues, then the purchaser can void the contract & request that the downpayment be returned to him.