Property Title Search: A Process Overlooked By Honolulu Sellers and Buyers

When buying a Honolulu house it is important to have the property title searched.  Although it is a very important step in the process few homeowners or buyers are aware that it needs to happen before the sale can close.  

A title search is used to check if there are any liens or other claims on the house that could stop the Honolulu sellers from selling.  Even though Honolulu homeowners try to stay up to date on this information sometimes hidden liens can completely stop a sale in its tracks.

Why Perform a Title Search

A title search has to be completed after there is an offer accepted.  There are many places that need to be checked before a title can be deemed clear.  A third-party will search through various sources to ensure there are no hidden claims.  This could be on the deed or even be fines against the owner that have been connected to the home.  

Once the search is conducted there is a report that is created.  This report shows what sources were researched and deemed to be free and clear of any liens or claims.  With a clean title, the lender that is being used for the purchase and the Honolulu buyer will know that the property will have no hidden surprises when the buyer takes official ownership.

The Purpose of a Title Search

Honolulu sellers have the responsibility to make sure their property is able to sell.  This is often called a marketable title. If the homeowner had any liens on the property they would not have a marketable title and they should not pursue any buyers.  Anything against the property title is a chance for a third-party to argue the homeowner does not have the right to sell the Honolulu property until their debt is paid.

A buyer must have a title search completed to ensure that the property is truly owned by the person trying to sell it.  They also want to avoid taking over a property that has any liens or debt tied to it. Any problems found with the title should be taken care of by the Honolulu sellers before closing the sale.  If this is not done the buyer may find themselves with new debts that once belonged to another person.

Finding a Professional

Do not worry about finding someone to conduct a title search.  This will be set up when the lender is organizing escrow. They will ask a title company to start the title search.  

If a homeowner wants to search for liens when they are not selling they can contact the title company directly.

Finding Liens Without a Title Search

Honolulu sellers may want to search out liens on their property for themselves before accepting an offer.  It is a labor-intensive process and many people leave it up to the professionals because of the time that needs to be spent reviewing multiple documents.  This can be done by visiting the local Recorder’s Office with the property’s legal description and getting the public records of the Honolulu house.

Spending Money on a Title Search

It is hard to pinpoint the exact amount a title search will cost for a Honolulu buyer or a homeowner.  The title search can start anywhere from one hundred dollars up to one thousand dollars. This does vary from basic to a more in-depth review of the property.

Anyone looking to buy a Honolulu house should complete a title search.  While paying out the money to do a title search does is never enjoyable, it is even worse to find liens on the property after the sale is complete.  Finding problems with the title before the sale is complete gives the Honolulu sellers time to fix the problems. If a buyer goes in blind they may come out the other side with thousands of dollars of extra debt.