What’s Right for Me, Owners & Encumbrance or Full Title Search?
Are you thinking of purchasing a home at the Lake of the Ozarks? If so, you may be faced with the decision of a title report (also known as owners & encumbrance) or getting a full title search with title insurance. Buying a home has many intricacies, some of which can come with unexpected fees if you’re not prepared. In this week’s blog, the best title company at the Lake of the Ozarks, Arrowhead Title, is going to share a little information to help you decide which route is best for you. Obtaining a owners & encumbrance report or a full title search. Read on to learn more!
Understanding the Difference
When buying a new home, knowledge about the property is one of the most valuable things you can have BEFORE the purchase. You may find yourself with the option of choosing a owners & encumbrance report (aka title report) or getting a full title search. In order to know which is best for your buying situation, it’s necessary to understand both terms and what they provide.
Owner & Encumbrance
Also known as a property report, this limited report offers a limited search of public records used for informational purposes only. It is not to issue any form of coverage through title insurance. This report will identify items such as the property’s most recent owner, taxes owed on the property, outstanding deed of trust, and possible liens – which can be of great value to know before buying the home. These reports are typically utilized by buyers at real estate auctions to be aware of any current title matters or issues with the property.
Full Title Search
In a full title search, your title company will perform a thorough search of county public records to identify any defects of title, deeds, property tax, or outstanding liens against the property. The title company will issue title insurance, listing any liens against the property as “exceptions” to a title policy. The title report will include a legal description of your property’s physical location and boundaries. A full title search provides you with an abstract of title, which is a report that goes back 30 years showing the full chain of title on the property.
What’s Best for me as a Homebuyer?
As a home buyer, we highly recommend obtaining a full title search, even if your lending institution doesn’t require it. As we mentioned above, having ample knowledge of any title defects, outstanding deeds, taxes, or liens against a property is invaluable information before buying a home. Plus, in doing so you qualify to obtain title insurance, which protects your ownerships right once you’ve purchased said home.
Arrowhead Title has been helping new homeowners maximize their investment and minimize their risk when buying a home at the Lake of the Ozarks. Allow our expert team and dynamic solutions to help identify the history of your home and uncover any potential pitfalls before making the purchase. Then, have our title insurance team at the Lake of the Ozarks help protect your rights to the home you’ve purchased with title insurance. Trust the professionalism of Arrowhead Title for your next real estate transaction.