Why Is A Title Search So Important In Florida Real Estate Transactions?
When a person is interested in buying a piece of property in Florida, the next step for them after making an offer is a title search. A title search is a crucial step in the real estate process, as it can uncover any potential irregularities in the chain of ownership. Without a title search, your dream home may get so tied up in red tape that it can take significant time and trouble to untangle it.
Spotting Potential Issues
The process of a title search is fairly straightforward; a company or attorney will search public records to see whether any potential ownership disputes or encumbrances exist on the property. It may feel superfluous to conduct a title search if the prospective seller is unaware of any issues, but it is better to do the search simply because sellers are not infallible. In Florida and many other states, a buyer of residential real estate is responsible for past debts and other costs that are not discovered in a title search.
Some of the most common issues that a title search can uncover include:
- Any outstanding liens, such as from construction or tax authorities;
- Use restrictions, such as easements (grants for certain people to come onto the land, such as utility repairmen);
- Judgments – in other words, legal debts established by a judge’s ruling or jury’s findings; and
- Potentially invalid deeds or transfers – whether from simple clerical errors or someone attempting fraud.
Should The Contract Proceed?
While some legal issues are surmountable, with the right cooperation between buyer and seller, some should be handled before a transfer of the property can take place. A buyer usually has the right to insist that liens and judgments are paid off, and in some cases, Florida law will require it. In some cases, the buyer may adjust the asking price of the property so that the seller can pay the debt, but depending on which details are at issue, the seller does have the right to insist in some cases.
It is worth noting that Florida does have some scenarios where a seller is required to disclose a potential issue to a buyer – for example, the case of Johnson v Davis (1985) states that if a seller knows facts about a property that (1) could materially affect its value, and (2) are not “readily observable” to the buyer, has a duty to disclose those facts to the buyer before a contract of sale is concluded. However, this definition does provide a lot of leeway in terms of what may be “readily observable.”
Call A Tampa Real Estate Attorney
When buying a piece of real estate, it is generally a good idea to have as much information as possible at your disposal before pulling the proverbial trigger. A Tampa real estate attorney from the Seward Law Office can help answer your questions about title searches and the rest of the real estate process. Call our office today to schedule a consultation.
