Buying real estate in Louisiana is complicated in that the history of the property is not always known. There are several factors that could impact a real estate transaction, some of which are unknown to the owner or sales agent as well as the potential purchaser. This means that all details associated with a property could mean that unforeseen legalities apply, such as a lien of some type. For this reason, all real estate transactions for property must be title searched before any deal can be finalized, and it must be done by a real estate legal professional.
Why a title search is necessary
No one wants to make an expensive investment decision to purchase property that may be compromised regarding clear ownership. Many potential purchasers often take out title search insurance just in case they buy property that has a financial or lien issue from prior ownership or failure to pay property taxes by a prior owner, including the current seller. The only valid real estate purchase is for property with a clear warranty deed as prior obligations will take precedence.
Who should conduct the title search?
It is always vital to have a title search conducted by a legal professional who understands where to look for possible problems. This can be an exhaustive process regarding a real estate transaction. While some buyers will retain a title company to conduct the investigation, many individuals select a private professional to provide the due diligence necessary for a comprehensive legal analysis.
Property purchases involve large sums of financial resources that could be jeopardized in the event of a prior lien or tax responsibility, which is a dilemma for all involved parties. For this reason, it is the law that any real estate transaction must be researched before a purchase agreement can be validated, also known in the industry as closing.