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The importance of a title report

Before purchasing any piece of real estate in Florida, a title report should be ordered. It is the responsibility of the buyer to review this report carefully and Redfin explains that there generally is only a small window of time in which any response to the contents can be provided. This may even include invoking the title contingency if something looks serious enough to make the buyer decide not to continue with the purchase.

Among the many things that a title report will show is the existence of any encroachment or easement on the property. Zillow adds that the existence of any requirements related to the designation as a historical property may also appear on the title report.

If the property is in a development with a homeowner's association, the particular rules that govern that HOA will be included. These are formally called the covenants, conditions and restrictions or CC&Rs.

Legal rights to sell a property are also identified on a title report. If a property has transferred ownership due to a divorce or a death, for example, the title should show the proper ownership. In addition, a buyer will have the ability to see if any other party has placed a lien on the property. Some liens are relatively standard such as the mortgage. Property tax status also shows up on a report. other liens that buyers may not be prepared for include those placed by contractors, municipalities or even utility companies. All liens are required to be satisfied before a sale of a property may be finalized.




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