If you’re buying real estate, one of the most important, but often overlooked, steps is making sure you’re receiving clear title to the property. That’s where a title opinion comes in. While it may not be the most visible part of the transaction, it plays a critical role in protecting your ownership and avoiding issues down the road.
A title opinion is a legal review of the property’s ownership history. An abstract company prepares an abstract of title based on public records, including deeds, mortgages, easements, covenants, liens, zoning ordinances, court filings, and other recorded information. An attorney then reviews the abstract and issues a title opinion confirming that the seller owns the property and has the legal right to transfer it. As part of that process, the title opinion will also disclose any easements, restrictive covenants, or other use limitations affecting the property.
Clear title means there are no outstanding issues that could affect your ownership of the property. This includes things like unpaid mortgages, tax liens, mechanic’s liens, judgments, ownership disputes, errors in prior transfers, boundary issues, or situations where proper court approval may have been required. If any of these issues exist, they may need to be resolved before closing.
Not everything listed in a title opinion is a “problem.” Some items, like easements and restrictive covenants, are simply limitations on how the property can be used. An easement gives someone else a legal right to use a portion of the property for a specific purpose, such as a utility line, driveway access, or drainage. A restrictive covenant, on the other hand, may limit certain uses of the property, such as building restrictions, fencing requirements, or limitations imposed by a subdivision or homeowners association. These are common and often expected, but they are important to understand before closing. A title opinion ensures you’re aware of these restrictions so there are no surprises after you take ownership.
Without a proper title review, you could unknowingly purchase property with legal issues attached to it. These issues can be costly and difficult to fix after closing. A title opinion helps identify and address these risks ahead of time. If an issue is found during the title review, it doesn’t necessarily stop the transaction, but it does need to be addressed. This might involve paying off a lien, correcting a prior deed, or obtaining additional documentation. Your attorney will work to resolve these issues so the transaction can move forward with confidence.
When you purchase real estate, you’re not just buying a physical property, you’re buying the legal rights to that property. A title opinion helps ensure those rights are clear, valid, and properly transferred to you, while also making sure you understand any limitations that come with ownership. If you’re buying real estate and have questions about the title process or what to expect, I’m always happy to help you navigate it and make sure everything is handled correctly.
If you have questions about your situation, we are happy to help. You can reach the firm at info@sailerlegalservices.com or (319) 205-3845 to schedule a consultation. This Blog is for informational purposes only and is not intended as legal advice. Reading this content does not create an attorney-client relationship with Sailer Legal Services, PLLC.