A clear title isn’t required when buying or selling real estate,
but investors can run into problems without it.

No one wants to put time, effort, and money into a real estate transaction just to have it unravel when it’s time to sell because of a title issue. A clear title is an extremely important part of real estate investing and something all real estate investors should understand before buying an investment property. Learn what is a clear title in real estate and how it can impact an investment deal.

What is a clear title?

Clear title means a property is free of any lien, encumbrance, or title defect that could cause dispute about legal ownership. Defects or liens such as a mortgage, unpaid property tax, municipal lien, code violation, discrepancy in legal description, or mispelled or mismatched owner names, among other issues, can cause questions over legal ownership. When there’s a clear or good title, there are no legal defects, and the current property owner is evident and clear.

Why A Clear Title Matters For Investors

When a property is sold, the title is transferred from the seller to the buyer. Typically, this is done with a title company, who orders a title report to determine if there is a title problem and rectify any issues discovered in order to close with a clear title. However, having a clear, marketable title isn’t required to buy or sell a property. Investors can purchase or sell a property with title issues, but those defects transfer to the buyer, making things like getting a mortgage or purchasing a title insurance policy impossible until rectified.

Times When Purchasing Without A Clear Title Makes Sense

There are times when it may make sense for an investor to purchase a property despite having a cloud on the title. A tax deed sale or distressed homeowner that has code violations, outstanding taxes, or an existing mortgage are often sold at a discount. The better pricing can compensate for the cost and effort the buying investor will need to clear the title while still being able to renovate or rent the property in the meantime.

Read More…

About Skip Force LLC.: Skip Force is a SaaS company based in Austin, TX. Founded in August of 2019, Skip Force has developed solutions, for real estate investors and resellers, to streamline the skip tracing process to effectively close leads.

Related News

Skip Tracing for Real Estate
Skip Tracing for Real Estate

“Skip tracing” is the process of locating a person’s whereabouts. If you’re in real estate, skip tracing allows you to find motivated sellers for great deals. By skip tracing you’ll be able to get listing, wholesale, or investments faster. How Does Skip Tracing Help In Real Estate? Let’s say you have a list of foreclosures. […]

Drilling One
Skip Force Drilling One

Skip Force Drilling One Skip Force Drilling One – Interesting people are interested. Why did he say that? Because people tend to always talk about themselves. Right. What? You want to listen to someone who keeps bragging about himself? No. Right. You want to brag about yourself, too. So mirroring actually is the way is […]

SFA Launched
SF Pricing Explained

SF Pricing Explained SF Pricing Explained – We have multiple options with our skip tracing and property data services. I’m going to break it down for you so you can make the best decision for your business. For skip tracing, there’s member pricing and nonmember pricing. Now you’re going to get the same data for […]