
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SUNDAY, April 23, 1995                   TAG: 9505080003
SECTION: AMERICAN HOME WEEK                    PAGE: 17   EDITION: NEW RIVER VALLEY 
SOURCE: DAVID T. MULLINS, ATTORNEY AT LAW
DATELINE:                                 LENGTH: Medium

TITLE EXAMINATION MUST PRECEDE SETTLEMENT

Before settlement occurs on any property, it is vital that a home buyer have a title examination performed by an experienced attorney or other title examiner. The lender will always require a title search so that it may be assured that the lien securing its purchase money loan is a good one. Even if the home buyer is paying cash, and no lender is involved, a title examination should be made to determine whether title coming from the Seller is free and clear.

Records concerning the ownership of real estate are filed and indexed in the clerk's office of the Circuit court for the city or county where the property is located. Property tax records may be found in both the clerk's and treasurer's offices. The title examiner will examine these records, usually for at least the prior 40 to 60 years, to determine what liens, easements or other encumbrances may affect the property. Any "defects" in the title can be corrected prior to settlement.

A title examination would reveal any loans encumbering the property which must be paid off from sales proceeds. The examiner would also learn of easements, rights of way, mechanic's liens, delinquent real estate taxes, and any number of other problems which can best be taken care of before the buyer pays for the property.

Most lenders require that title insurance protecting their loan be purchased at the time of closing, and a title examination is required in order to get such a policy. Title insurance can provide assurance against potential title defects, even if not detected by the title examiner. The prudent home buyer should also inquire of his or her attorney as to whether a separate owner's title insurance policy may be advisable.

by CNB