Frequently Asked Questions about Title Searches & Real Estate Law
We’ve compiled a list of some of the typical questions we’ve been asked, and provided the answers. Please email us if you have a burning question that we haven’t addressed below.
What is a Title Search? A title search is a process of investigating a property’s history. Its purpose is to investigate the history of the property through relevant records for any variances or irregularities associated with the property. It’s typically performed when a property is being transferred to new ownership, through either a sale or inheritance.
The resulting report filed from a title search is called an Abstract or an Abstract of Title. It precludes a Deed and is one of the processes that real estate law requires when transferring ownership. The mortgage company also requires it before any loan can be approved.
What is Title Insurance and Why Do I Need It? It is an insurance policy purchased for protection against most title defects. More than 1/3 of all title searches reveal a title problem that title professionals fix before you go to closing. The title search seeks to find and resolve problems like these before you go to closing. But even the most thorough search cannot absolutely assure that no title hazards are present, despite the knowledge and experience of professional title examiners. In addition to matters shown by public records, other title problems may exist that cannot be disclosed in a search.
Title insurance will pay for defending against any lawsuit attacking your title as insured, and will either clear up title problems or pay the insured’s losses. For a one-time premium, an owner’s title insurance policy remains in effect as long as you, or your heirs, retain an interest in the property. It offers you peace of mind in knowing that the investment you’ve made in your home or property is a safe one.
What should I expect at closing? At closing, all legal documents will be looked over by you, the client(s), and any questions will be answered by the closing agent. The documents are then signed and the lender documents are returned to the lender for review.
If you are refinancing a loan, there is a three-day rescission period in which you have the option of canceling the transaction. Once the rescission period expires and money is received from the lender, the documents are legally recorded and funds are disbursed.
How long does a real estate closing take? If everyone does their jobs and buyer and seller both take care of everything they need to do before closing then the closing should be the least stressful and fun part of the real estate transaction! The average real estate closing will take an hour to hour and a half. More complicated transactions will require more time.
What Should I Bring to Closing?
- Photo identification (passport, driver’s license, or federal/state-issued picture identification card)
- Method of payment in the form of cash, cashiers check, or wire transfer for closing costs if required
- Any additional documentation that your escrow officer or loan officer has asked you to supply
What is the Homestead Law and how might it help me?
A “Homestead Excemption” is a type of protection for a person’s principal residence. There is an automatic homestead protection of $125,000. This automatic protection may be sufficient to protect a deposit made upon the estate; however, it is not likely to be sufficient coverage to protect the full value of your home. In order for homeowners in Massachusetts to protect the value of their property up to $500,000 per residence, per family, you must file a document called a “Declaration of Homestead”. The form is filed at the Registry of Deeds in the county or district where the property is located, referencing the title/deed to the property.
In New Hampshire, the Homestead exemption is automatically given to you in your primary residence when you move into your home. The homestead exemption safeguards your home up to $100,000 against creditors that file judgments or liens against you. Because the exemption is automatically given to you by the state, there is no need to file paperwork applying for homestead. If you are building or remodeling a home in NH that will become your primary residence and you are not currently living in the residence (in NH), you will need to file a declaration of homestead asking to have that home protected under the homestead exemption while it is not currently your primary residence.
The Homestead Law does not protect against:
- Federal, State and local taxes
- Liens recorded prior to the filing/creation of the homestead
- Mortgages
- Order of the Probate Court for support
- Levy of sale for ground rents (where homeowner doesn’t own the land)
- Execution from a court to enforce a judgment based upon fraud, mistake, duress, undue influence or lack of capacity
One of the key differences between the Homestead Exemption in Massachusetts versus New Hampshire is that in Massachusetts the homeowner must record the homestead declaration while in New Hampshire the exception is automatically given to you.
Still have questions? We’d love to answer them. Please call 603-898-8815 or email Thompson Title.
