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When buying real property you must demand fee simple marketable title. Fee simple title is clear title, that is "clear" of any liens.
The question is what is clear title and how do you get it. If the seller cannot give you fee simple title DO NOT BUY THE HOUSE.
Fee simple title is a legal description for the highest and best title available for real property. Only when title is held in fee simple can a clear title be granted you. Although I’ve seen buyers accept less than fee simple title in the twenty years I’ve been marketing real property, I don’t recommend it.
Title "clouds" or defects are often discovered in preliminary title searches which are performed by a title company or an attorney. Clouds can include unpaid liens or judgments, encroachments, easements and other situations that need clarification. Some clouds may pass with the title.
Title companies search the public record to determine that the chain of title has not been broken or violated. The public record includes deed books, estates, recorded plats and judgment records. A visit to the registrar of deeds office is both enlightening and educational.
If the chain of title can be perfected, title insurance may be issued to protect you from any claim against the property in the future. Title insurance is your guarantee of clear title. If a mortgage is involved in your transaction, the lender will require a title search and a lender’s policy will be issued. If you buy real estate demand fee simple title and title insurance no exceptions. IT MUST BE PERFECT!
Whether you’re thinking about buying or selling or merely seeking information, rely on me to provide accurate up to date information about the marketplace today.
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