Title search companies will perform the work of researching the history of a title on a piece of real estate. This fee is typically included in the closing costs for a mortgage. It is a necessary step in purchasing a piece of property. The fee is typically $75 to $100.
Why Title Search Fees are Required?
A title search is necessary to discover any hidden problems concerning the ownership of a piece of property. For example, a search will uncover an outstanding tax lien, which is actually connected to the property and not to the previous owner. A title search will also discover outstanding lawsuits on the property that will need to be resolved before purchase.
What is Title Insurance?
Searches uncover most problems with title ownership. However, there may be some issues that remain hidden. To protect against these problems, many insurance companies offer title insurance. If any claim is brought against the property as a result of a pre-existing problem with the title, title insurance can cover the expense. Title insurance may also be required as part of the closing costs of a mortgage. Buyers should estimate closing costs amounting to 3% of the total mortgage loan.