In our last blog, we wrote about a certificate of title is and the security features of this title.
As part of buying a property, your conveyancer will complete a title search of the property you are looking at purchasing. This title search will reveal key information about the property so that you can make an educated decision about the purchase.
A title search shows
Who owns the land – Your search results will include the name of all landowners. On the occasion that there is more than one owner, it will show the type of ownership. This may be tenants in common or joint tenants.
If there are easements – Should your property show an easement, this is a right of way given to another who does not own the property. This right of way gives permission to use the property for a specific purpose. Or it may be for service access allowing workers to access drainage in your backyard. Having an easement can restrict your use of the land and may prevent you from building in that area so it’s important that you’re aware of them before you buy.
If there are caveats on the property – A caveat shows that someone else has an interest in the property. If someone has a potential claim to part or all of a property, they may lodge a caveat, which prevents the owner from selling their property clear and free. A builder may put a caveat on a property if the owner owes them money.
If there are covenants – A covenant is a guideline or restriction on the land that can limit what can be built on it. It may also restrict where it can be built and from what materials it can be built with.
If there are mortgages on the property – When there is a mortgage on the property, the bank holds the Certificate of Title, rather than the property owner or a solicitor. The mortgage provider will be listed on the title. As part of buying and selling property, any mortgage will generally be discharged at the property settlement.
Should you have any questions about performing a title search on a property or your conveyancing requirements, please contact Select Conveyancing.