Examination of Title


All smart buyers will do some examination of the title on a property before going through with the purchase. This is necessary because the title can sometimes be questionable; a person might have a legal claim to the title that has been unresolved in the past. More importantly, there may be some lien against the title that will come up on inspection. The examination of the title is done in order to establish a clear understanding of the chain of ownership. Many buyers will contract with a title company to handle this examination. The title examination is usually ordered in conjunction with title insurance. A buyer will take out this insurance in case there is some undiscovered problem with the title of the company. If something does happen that impacts the buyer’s right to the title, the insurance will cover any costs that might follow.