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Frequently Asked QuestionsWhat is a Title Search ?Land is the basis of all wealth, and because real estate is the only asset that cannot be moved or hidden, every possible party seeks it out for lien rights; the right to put something against the title for security purposes. To build homes, factories, schools and offices, people must first acquire land. Because ownership of real estate is so basic to our entire society, special laws have evolved which deal with land. For this reason, a title search is important in the purchase of any property. A title company, in it’s searches, will consider many items, some of which are listed below.What Are Mortgages?A mortgage or trust deed is a lien on real estate. If a seller of real estate has a mortgage on his property and fails to make payments as required by his mortgage and promissory note, the lender can foreclose and sell the property. A title search will disclose whether there are any unreleased mortgages or trust deeds so that a prospective buyer can make arrangements to have them paid.What About Unpaid Real Estate Taxes?In Missouri, if real estate taxes are not paid, the owner of the property can lose ownership. There are many instances where people have lost their homes because there were just a few dollars in delinquent taxes. A title search will disclose if the real estate taxes are paid and current.What Are Special Assessments?When a city or village installs streets, curbs, sidewalks, sewers, streetlights or other improvements, they have the right to levy a special assessment tax payable over a number of years. Just as with real estate taxes, non-payment of a special assessment can result in the loss of ownership of a home. There are also liens called drainage district annual benefit assessments and city or village lien sales. A title search will disclose if there are any assessments and city or village lien sales and whether they are paid up to date.What Are Judgments?If a person fails to pay a debt, he or she may be sued and a judgment entered against them. This judgment can become a lien on all real estate owned and acquired by the judgment debtor. An execution sale can be held and the real estate sold to satisfy the judgment. A title search will disclose if there are any judgments and whether they are satisfied.What Are Federal Tax Liens?The federal government has the right under the law to levy against and sell, without court proceedings, a home or property of anyone whose federal taxes are unpaid. A title search will disclose if any federal tax liens exist against the real estate.What About Other Government Liens?The federal, state, county township, village and city governments also have the right to lien and sell real estate to pay for various taxes and services. These liens include among other things, liens for inheritance tax, estate tax, income tax, sales tax, unemployment compensation contributions, old age assistance demolition costs, cutting of weeds and removal of debris, retailers occupation taxes, water and sewer taxes, and others. A title search will disclose if any of these liens are present.What Are Decedents?When an owner of property dies, the title company determines who the heirs are, whether there was a will, whether estate and inheritance taxes are paid, whether creditors claims against the estate are paid, and considers probate proceedings, if any.What Are Court Proceedings?There are also a multitude of court proceedings which can have an effect on title to real estate. When encountering lawsuits, the title search will disclose the effect of the proceedings on title.What Are Covenants, Conditions and Restrictions?The use of land is frequently limited by deed restrictions. For example, many deed restrictions prohibit the construction of anything other than single family homes or require certain set back lines or that homes cost a certain amount. Some restrictions provide that if the restriction is violated that the title will revert back to the original owner. The title search discloses if there are any restrictive covenants.What Are Easements?A title search also discloses whether easements are present. An easement is the right to pass on another person's land. Typical easements would include easements for utility lines, water well, joint driveways, etc.Your Choice As A ConsumerThe home seller and buyer are entitled by law to choose the company that will do their title search, and to know if the title company is splitting its fee with one of the parties to the transaction.
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