Whenever a home buyer and seller get together on the terms of a deal to sell a house quickly, a whole chain activities are set in motion. They are divided into two sets of things, those the buyer must pursue, such as scheduling a property inspection and applying for a mortgage. And of course the seller has a separate set of activities, starting with a title report showing the property is free and clear of encumbrances.
I know many people are confused about what is meant by "clear title." To tell the truth, there are people involved in the business of selling homes who wouldn't be super comfortable if you asked them to define "clear title" and "cloud on title." It took a while for me to grasp that the idea of clear title isn't very clear, so I'm writing this article to help you learn how to sell your home.
Looking up both terms in a dictionary, in special dictionaries online for legal and real estate terminology, you may see "cloud on title" defined as "any document, claim, unreleased lien or encumbrance that might invalidate or impair the title to real property." Right… Is that a clear explanation for most of us? Most people want to understand how to sell a house fast, and that explanation doesn't help much. Based on my many years of real estate experience, I'm going to give you my own definitions, even though you won't find them written this way in a dictionary. I'm just hoping you will find they work to help you gain more clarity on the subject.
Let's begin by saying that land has a life of its own, and all the buildings on it are included. Ownership records of the property are kept by the county where it is located. Starting with ownership by the Federal Government, each piece of land has a unique history of ownership, and public records include liens placed against the property as well. So, picture this - all financial claims, such as mortgages, create a cloud on the title, and that means it's not clear. It's cloudy. Old liens and mortgages have to be cleared up before or at the time of closing when selling a house.
So, that means a seller must engage an attorney or a title company to conduct the title search. The researchers look through county records to find any possible unresolved financial or legal ownership interests in the property. Of course it's not too likely that somebody will actually appear at closing and interfere with your transaction, attorneys have to assume the worst to take care of any eventualities on your behalf in order to sell a house fast.
I know many people are confused about what is meant by "clear title." To tell the truth, there are people involved in the business of selling homes who wouldn't be super comfortable if you asked them to define "clear title" and "cloud on title." It took a while for me to grasp that the idea of clear title isn't very clear, so I'm writing this article to help you learn how to sell your home.
Looking up both terms in a dictionary, in special dictionaries online for legal and real estate terminology, you may see "cloud on title" defined as "any document, claim, unreleased lien or encumbrance that might invalidate or impair the title to real property." Right… Is that a clear explanation for most of us? Most people want to understand how to sell a house fast, and that explanation doesn't help much. Based on my many years of real estate experience, I'm going to give you my own definitions, even though you won't find them written this way in a dictionary. I'm just hoping you will find they work to help you gain more clarity on the subject.
Let's begin by saying that land has a life of its own, and all the buildings on it are included. Ownership records of the property are kept by the county where it is located. Starting with ownership by the Federal Government, each piece of land has a unique history of ownership, and public records include liens placed against the property as well. So, picture this - all financial claims, such as mortgages, create a cloud on the title, and that means it's not clear. It's cloudy. Old liens and mortgages have to be cleared up before or at the time of closing when selling a house.
So, that means a seller must engage an attorney or a title company to conduct the title search. The researchers look through county records to find any possible unresolved financial or legal ownership interests in the property. Of course it's not too likely that somebody will actually appear at closing and interfere with your transaction, attorneys have to assume the worst to take care of any eventualities on your behalf in order to sell a house fast.
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