PROPERTY TITLE OPINION
PROPERTY TITLE OPINION
In general , if you are going to the market to buy some fruits and vegetables, we choose the quality fruits and vegetables. In the same scenario we are buying land or property, before we should consider whether it has the legal risks or any other advice by appointing a skilled advocate for the property title opinion.
WHAT IS TITLE OPINION ?
The title opinion refers to the lawful or legal opinion which helps to know the information about the validity of the title deed or the comprehensive evaluation of the property. Generally the title opinion is issued by a legal attorney. After conducting the detailed research about the property from the public records, the attorney should analyse the legal issues and about the ownership of the property. And the title opinion of the property is based on the attorney review about the legal status of the property. It is very essential to know the legal structure of the property. The title opinion plays a major role in the buying and selling of the property.
TYPES OF TITLE OPINIONS :
There are certain different types of the title opinion for the properties, which includes Standard, Limited, and Gap.
- Standard Title opinion : This standard title opinion provides the comparative evolution of the property which includes the title, issues, and all the overall details included about the property.
- Limited Title opinion : In this opinion it gives the primary report about the property. The report which only highlights the significant issues which affect the ownerships. In this limited opinion it only focuses on the primary issues. Only the limited information should be available in the limited title opinion.
- Gap title opinion : It is issued by the attorney who provides their opinion about the legal status of the chain of title of the property.
These are the necessary documents needed for the drafting of the security agreement.
WHAT IS THE PURPOSE OF TITLE OPINION :
The main purpose of the Title Opinion is to provide the assurance or the guarantee to the buyer and the lender about the title of the property, which is free from the legal issues, liens and other issues that affect the value and the ownership of the property. It helps to reduce the risk of fraudulent activity, certain encumbrances of the property and parties’ interests in the potential risks of the property.
It mainly identifies the following encumbrances:
- Legal and general Circumstances of the property.
- Purchase details of the property.
- Loan or mortgage of the property.
- Periodic inspection of the property.
- Mortgage and liens.
- Unpaid tax.
- Third-party easement.
WHY TITLE OPINION ?
We have already seen that, when we come to purchase the property, it is one of the most important procedures to obtain a clear title opinion about the property. It helps the buyer and seller about the legal consequences and the value of the property. So ensuring the clear title opinion is important for the purchase of the property.
QUALITIES OF EXPERTS FOR TITLE OPINION :
There are several factors to consider when searching the experts for the title opinion of the property. We should note the essential qualities such as,
- The person or the expert should have strong expert knowledge in real estate or having the specialisation in property law.
- The expert should have the capabilities to track the records in the field and having sills and such reputations
- The real estate is vary from each jurisdiction so the expert should have the local knowledge about the rules and regulations of the title issues.
- The expert should submit the appropriate details about the title opinion so having the experiences in the examination of such property documents.
- The experts should have the clear communication skill to explain the complex legal issues regarding the title issues.
- A good expert should provide a clear overview about the costs which are involved for the title opinion.
These are the certain essential qualities that must be essential for an expert for providing the clear title opinion.
PROCEDURE FOR OBTAINING THE TITLE DEED OPINION :
1. Hire the professional lawyer :
First we need to hire a professional lawyer who has the greatest skills in the aspects of property laws. Every buyer, seller or the lenders should approach a professional lawyer for the smooth process of obtaining the title deed without any legal issues. Appointing the legal person for the title opinion will reduce half of the legal burdens.
2. Providing Documents :
After appointing the professional lawyer we need to submit all the necessary documents about the title of property to him. The essential documents which includes,
- Parent document.
- Sale deed.
- Property sketch plan.
- Approval of patta for the property.
- Encumbrance certificates.
- Tax receipts which were recently paid for the property.
- EB invoices (for buildings).
- Completion certificates (If buildings in such property).
- Power of attorney.
All these documents should be submitted to the lawyer for examining the legal issues in the said property for the title opinion.
3. Study the property history or Title examination :
One of the most important procedures is studying the history of the property or examining in detail the property. And list out the names of the previous owner and current owners of the property. If in case the owner is deceased, then check the legal success of the property. The appointed lawyer will check all the legal issues and the property opinion about the property after analysing all the essential documents.
The title examination is reviewing the legal records of the property for ensuring the status of the title of the property. In this process the records are used to analyse or examine the public record, which includes the deeds, mortgages of the property, tax records, court documents, and the potential records about the property. The good examination will help the buyer and seller from the risks of the property.
4. Finalising the examination :
Once the examination process is completed, there are several options available for finalising the clear title opinion about the property. The options may vary based on the jurisdictions of the transactions and registration.
- Title insurance : It is one of the best options for the purchaser of the title insurance who enjoys the protection of the defects of the titled property. In this, it was issued by the title insurance company which indemnifies the buyer and lenders from the losses of such property
- Title curative action : In certain cases the examination of the title may have unresolved issues. This helps to solve all the unresolved legal issues in the tiled property and correcting the errors. In this title curative action, it takes more time and cost for resolving the issues.
- Negotiations and Resolution : In some cases the buyer and the seller were involved in the process of the negotiation and resolved their issues. If any title issues are identified while in the process of the examination of the title.
Once the examination process is completed, there are several options available for finalising the clear title opinion about the property. The options may vary based on the jurisdictions of the transactions and registration.
5. Encumbrances :
The lawyer should also check other encumbrances which the seller has involved in the mortgage of such property. The seller may have a sibling who is also having the right over the property.
Certain things that we need to ensure when title opinion of the property.
The chain of the title of the property should be checked that the property is transferred from any other hand other than the valid person.
- If the buildings or the property is in the property, necessarily should check the copy of the planning permissions with the legal opinion.
- Tenancy should be carefully considered before the legal opinion on the property, particularly in the term of lease of the such property.
- It must be properly verified with the registered power of attorney documents.
After the examination of the title opinion of the property, it can be decided by the parties based on the title opinion
FAQ
FAQ ON THE PROPERTY TITLE OPINION :
1. WHAT IS TITLE OPINION ?
The title opinion refers to the lawful or legal opinion which helps to know the information about the validity of the title deed or the comprehensive evaluation of the property.
2. WHAT IS THE PURPOSE OF TITLE OPINION ?
The main purpose of the Title Opinion is to provide the assurance or the guarantee to the buyer and the lender about the title of the property, which is free from the legal issues, liens and other issues that affect the value and the ownership of the property.
3. WHAT ARE THE FOLLOWING ENCUMBRANCES SHOULD CHECK ?
It mainly identifies the following encumbrances:
- Legal and general Circumstances of the property.
- Purchase details of the property.
- Loan or mortgage of the property.
- Periodic inspection of the property.
- Mortgage and liens.
- Unpaid tax.
- Third-party easement.
4. WHY OBTAINING THE TITLE OPINION ?
We have already seen that, when we come to purchase the property, it is one of the most important procedures to obtain a clear title opinion about the property. It helps the buyer and seller about the legal consequences and the value of the property. So ensuring the clear title opinion is important for the purchase of the property.
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