Property owners need to know the difference between deeds and titles. In fact, it does not matter whether the property is commercial or residential. A deed is a legal instrument used to convey property from one party to another. However, a deed does not guarantee ownership. Owners need to have a deed and title. In real estate, title means the holder has the right to use the property. Further, the title holder can change the property and transfer interest in it.
Having a clear title means there are no liens on the property. In addition, the property is free from any other defects. A defect is anything that allows someone else to claim an interest in the property. Just about anyone the owner owes money to can put a lien on a property. This includes a mechanic, bank, hospital, attorney, and even the federal government. The federal and state governments place liens on property to collect back taxes. A lienholder can enforce the lien if the property is sold. They can file legal documents to have money taken out of the property sale.
Business owners need commercial insurance in Naples, FL. Companies like Omega Title LLC provide clients with title insurance. Title insurance is different from other insurances. The main difference is that the consumer pays for it once at a real estate closing. Further, this title insures that the property is safe from events that happened in the past. Most mortgage companies require the buyer to have title insurance.
Have a title search done before you buy commercial insurance in Naples, FL. A title search is like a big puzzle. Someone from the title company traces the entire history of the property. The search begins with the first recorded deed. If this deed is clear, they will go onto the next one. Certain deeds may be stamped with notices of second mortgages and other loans. This means the property was used as security for the loan. Likewise, the deed should be stamped when the loan was paid. This is important because people can buy property with liens. Liens follow the property and become the new owner’s problem. Owners have a legal remedy if they buy title insurance.
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