Legal News You Can Use: Understanding the Importance of Title Searches

Many people fail to acknowledge the many steps required to purchase a home. Real estate transactions involve far more than touring a property, making an offer and closing on it.

For one, you will likely want a mortgage pre-approval before submitting an offer. Once you’ve signed a real estate contract for the home you’re buying, you will need to have it inspected to ensure it’s free from major defects. Furthermore, you must perform a title search on the property to make sure no barriers to your transaction exist.

What do title searches uncover?

To purchase a home, you must ensure it has a clean title. A title search will determine whether claims or issues exist that make it unsaleable.

While you can perform this search on your own, an attorney or a title company usually completes it. These professionals will know what to look for when evaluating the property’s title and going through public records. Their research may uncover problems that could prevent you from taking ownership of the property.

These problems include:

  • Competing claims of ownership
  • Mistakes in public records
  • Restrictive covenants
  • Outstanding liens
  • Encroachments

Why do title searches require insurance?

Before beginning your title search, you will want to secure title insurance on your property. Your mortgage lender will likely require you to purchase it since it protects them from any financial loss that title issues could cause. Keep in mind that standard title insurance will not protect you if your property’s title has defects. You have the option, though, to purchase owner’s title insurance, which will offer protection.

Title searches are a complex, confusing and necessary part of homebuying. Just because the process can be challenging should not dissuade homebuyers from completing their due diligence before they close.

Reading Uncertainly: ‘Talking to Strangers’ by Malcolm Gladwell

I admit that I am easily drawn to the words of Malcolm Gladwell, having already absorbed his The Tipping Point (2002), Blink (2007), and Outliers (2011).  I was not disappointed!.

This is yet another intriguing and challenging mental exercise about the way in which our brains tend to mislead us,

Consider meeting someone new and engaging in conversation: afterwards, we think we have understood each other, but have we really?

Gladwell cites many past meetings that have resulted in gross misunderstanding: Cortes and Montezuma; Hitler and Chamberlain; Sandra Bland and the Italian police; Bernie Madoff and investors;, Sandusky and the Penn State authorities.

He suggests the fallacy lies in “… the assumption that we all follow in our own effort to make sense of strangers. We believe that the information gathered from a personal interaction is uniquely valuable.”

It is our instinctive desire to believe what a stranger tells us: our latent bias to trust what we hear. But the emotional responses to others can be and often are misleading.  Gladwell says, “We tend to judge people’s honesty based on their demeanor.” Hesitancy, looking away, stammering, all lead us to doubt, but even those traits are misleading.

We are inevitably a species, “a society (that) does not know how to talk to strangers.” When we look differently, act differently, dress differently, we create instinctive wariness, alarm and natural aversion. When the stranger looks, acts, dresses and sounds like us, our natural sympathies are aroused.

Gladwell’s conclusion? Misunderstandings are entirely natural. “We will never know the whole truth,” so “… what is required of us is constraint and humility.”

So take heed … listen; pause, and think!

Editor’s Note: ‘Talking to Strangers’ by Malcolm Gladwell is published by LittleBrown, New York 2020.

Felix Kloman

About the Author: Felix Kloman is a sailor, rower, husband, father, grandfather, retired management consultant and, above all, a curious reader and writer. He’s explored how we as human beings and organizations respond to ever-present uncertainty in two books, ‘Mumpsimus Revisited’ (2005) and ‘The Fantods of Risk’ (2008).

A 20-year resident of Lyme, Conn., he now writes book reviews, mostly of non-fiction, a subject which explores our minds, our behavior, our politics and our history. But he does throw in a novel here and there.

For more than 50 years, he’s put together the 17 syllables that comprise haiku, the traditional Japanese poetry, and now serves as the self-appointed “poet laureate” of Ashlawn Farm Coffee, where he may be seen on Friday mornings. His late wife, Ann, was also a writer, but of mystery novels, all of which begin in a village in midcoast Maine, strangely reminiscent of the town she and her husband visited every summer.