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Land is the basis of all wealth, and because real estate is the only
asset that cannot be moved or hidden, every possible party seeks it out
for lien rights; the right to put something against the title for
security purposes. To build homes, factories, schools and offices,
people must first acquire land. Because ownership of real estate is so
basic to our entire society, special laws have evolved which deal with
land. For this reason, a title search is important in the purchase of
any property. Louisiana Title Services , in its searches, will consider many
items, some of which are listed below.
Mortgages
A mortgage or trust deed is a lien on real estate. If a seller of
real estate has a mortgage on his property and fails to make payments as
required by his mortgage and promissory note, the lender can foreclose
and sell the property. A title search will disclose whether there are
any unreleased mortgages or trust deeds so that a prospective buyer can
make arrangements to have them paid.
Real Estate Taxes
If real estate taxes are not paid, the owner of the property can lose
ownership. There are many instances where people have lost their homes
because there were just a few dollars in delinquent taxes. A title
search will disclose if the real estate taxes are paid and current.
Special Assessments
When a city or parish installs streets, curbs, sidewalks, sewers,
streetlights or other improvements, they have the right to levy a
special assessment tax payable over a number of years. Just as with real
estate taxes, non-payment of a special assessment can result in the loss
of ownership of a home. A title search will disclose if there are any
assessments and and whether they are paid up to date.
Judgments
If a person fails to pay a debt, he or she may be sued and a judgment
entered against them. This judgment can become a lien on all real estate
owned or acquired by the judgment debtor. An execution sale can be held
and the real estate sold to satisfy the judgment. A title search will
disclose if there are any judgments and whether they are satisfied.
Federal Tax Liens
The federal government has the right under the law to levy against
and sell, without court proceedings, a home or property of anyone whose
federal taxes are unpaid. A title search will disclose if any federal
tax liens exist against the real estate.
Other Government Liens
The federal, state, parish, township, and city governments also have
the right to lien and sell real estate to pay for various taxes and
services. These liens include among other things, liens for inheritance
tax, estate tax, income tax, sales tax, unemployment compensation
contributions, old age assistance, demolition costs, cutting of weeds
and removal of debris, retailers occupation taxes, water and sewer
taxes, and others. A title search will disclose if any of these liens
are present.
Mechanics Lien Claims
Any contractor who provides labor or material to a building and who
is unpaid can, for a period of up to 120 days from the date of
completion, file a mechanics lien as against a buyer of that property.
That contractor can then foreclose and sell the house if he is not paid.
The 120 day period makes this a "secret lien." A title search will
disclose if any mechanics liens have been filed. A title insurance
policy normally protects the buyer against the "secret lien" of
mechanics' lien claims provided Louisiana Title Services requirements have been
met.
Decedents
When an owner of property dies, Louisiana Title
Services determines who the
heirs are, whether there was a will, whether estate and inheritance
taxes are paid, whether creditors claims against the estate are paid,
and considers probate proceedings, if any.
Court Proceedings
There are also a multitude of court proceedings which can have an
effect on title to real estate. For example: Mortgage foreclosures;
decedents', minors' and incompetents' estates; Partition proceedings,
Condemnations and others. When encountering lawsuits, the title search
will disclose the effect of the proceedings on title.
Covenants, Conditions and Restrictions
The use of land is frequently limited by deed restrictions. For
example, many deed restrictions prohibit the construction of anything
other than single family homes or require certain set back lines or that
homes cost a certain amount. Some restrictions provide that if the
restriction is violated that title revert back to the original owner.
The title search discloses if there are any restrictive covenants.
Easements
A title search also discloses whether easements are present. An
easement is the right to pass on another person's land. Typical
easements would include easements for utility lines, water well, joint
driveways, etc.
Survey
If certain requirements are met, Louisiana
Title Services will insure that
no encroachments and problems of survey exist.
Your Choice
The home seller and buyer are entitled by law to choose the company
that will do their title search.
Contact
Layne Dodd at 1-800-769-2912 to find
out more. |
