So, after months of looking at condos for sale in Brampton, you have finally found the perfect one. Soon after finding the ideal property, you quickly wrap up the inspection, appraisal, and all the other countless steps successfully. But as you eagerly wait to get the key to your new condo, your Realtor tells you there’s still one key step remaining – “the title search process.”
At this point, you may be tempted to skip this seemingly unnecessary step and wonder if this is really necessary while buying the condo. Let’s explore this below –
What Is a Condo Title Search?
A condo title search is a process used to verify the legal ownership of the property you’re interested in buying. This search involves examining public records to ensure that the property’s title is clear of all issues.
A professional title company or a real estate lawyer usually performs the title search process for a condo for sale in Brampton. These professionals review the property’s history and verify that the seller has the legal right to transfer the ownership of the condo to you.
Is Skipping the Title Search an Option When Buying a Condo?
In Ontario, it’s not legally mandatory to get a title search done when buying a condo. However, most mortgage lenders require a title search before approving a loan as it protects their investment.
But even if you’re not buying the condo with the help of a mortgage, it is highly recommended to perform a title search to safeguard yourself. This is because by skipping the title search, you might inherit unpaid property taxes, discover that there are liens or judgments against the property, or find out that the seller does not have a clear title. Not so pleasant, right?
Hence, conducting a title search when buying a condo is a small investment as compared to the potential risks of not doing one. So, while not mandatory by law, a title search is a key step while buying a condo for sale in Brampton that you should not overlook.
Risks You May Face if You Don’t Complete the Title Search
Here’s what might happen if you choose to skip the title search step just because it’s not legally required –
- Unpaid Property Taxes – If the previous owner of the condo has not paid property taxes in full, these debts could be transferred to you. So, you might face unexpected taxes or legal action from the municipality to recover the unpaid taxes right after you become the condo owner.
- Existing Liens – Liens are legal claims against a condo in Brampton for unpaid debts such as contractor bills or court judgments. If you skip the title search process, you might inherit these liens. This means you could be responsible for settling these debts before selling the condo down the line (if the potential buyers choose to go ahead with a title search).
- Ownership Disputes – It may happen that the seller of the condo for sale in Brampton does not have clear ownership of the property. If so, you may not discover it without the title search meaning there could be unresolved inheritance issues, fraudulent transactions, or errors in public records.
- Easements and Restrictions – Easements allow others to use part of the condo for specific purposes such as utility maintenance. And restrictions might limit how you can use your property such as building regulations or land use limitations. A title search reveals these details and skipping it means you might face out-of-the-blue limitations on how to use your condo.
- Undisclosed Heirs – In some cases, heirs of the current owner may come forward in future claiming their share of the condo. If these claims turn out to be true, you could face legal challenges to your condo ownership.
- Fraudulent Transactions – Fraud can happen during the sale of a condo when sellers misrepresent their ownership status or conceal legal issues. A title search helps verify the legitimacy of the transaction, protecting you from falling victim to such a fraud.
- Legal Costs – All the legal costs to solve these title issues can be expensive for your wallet. You might have to hire an expert lawyer to clear liens, address claims from undisclosed heirs, or deal with whatever title issue you’re facing. These legal costs can quickly add up and can even exceed the initial expense of conducting the property title search.
- Loss of Property – In extreme cases, unresolved title issues can result in the loss of the new condo you have just bought. If someone else has a legitimate claim on the Brampton condo for sale, you might be compelled to surrender it.
What Is the Cost of a Condo Title Search, and Can You Handle It Yourself?
Title searches of condos in Brampton generally cost between $75 to $200 depending on the title company, property location, and the complexity of the search. If the search involves pulling extra records or is more complex than usual, the cost might be higher, sometimes reaching a few hundred dollars. Also, some title companies may charge homebuyers administrative fees for their services.
While it’s technically possible to perform the title search for the condo yourself, it’s not usually recommended. This is because conducting a thorough and accurate title search requires access to various public records and a deep understanding of real estate law which you might not have.
On the other hand, by hiring a professional title company or a real estate attorney, you can ensure that the title search for the condo for sale in Brampton is done thoroughly and accurately. These professionals have the expertise and resources to identify and resolve all title search issues. Hence, the cost of hiring these professionals will be like a small price to pay for the security and confidence it brings to you while buying the condo.
Final Words
According to the National Association of Realtors (NAR), about 10% to 15% of home purchases come across title problems.
If luck is on your side, the condo you’re buying may not have any title problems. But if the opposite is true, your deal may fall in the “10-15%” category and you may have to face title complications soon after becoming a homeowner. These issues can give you a headache and cost you quite a penny too.
Hence, avoid such unnecessary stress and get a title search done before sealing the deal for a condo for sale in Brampton. A thorough title search will uncover any existing title issues, allowing you to address them before you commit to the investment. This title search step is an investment in peace of mind and ensures a smoother home-buying experience.
