One of the leading causes of hindrances in the real estate industry is defective titles. They hold back the process of transferring properties; this has contributed to the stagnation of properties in the market. According to the National Title Clearing, Inc. (NTC), property records play a great role transferring property from one owner to another. These files carry information needed to determine whether the transaction can be successful or not. If the information were unavailable, then buying or selling of property would be inefficient. For this reason, NTC has created a website for property records.
Causes of Title Defects
Title deed defects result when another person, not included in the transaction, claims ownership of the property. Other reasons lead to title defects as listed below.
- Failure to include the signature of a person claiming ownership of the property; this includes the signature of a spouse.
- Sometimes people borrow loans and use properties as collateral. If the property is used as collateral, its ownership cannot be transferred to another person.
- Terms included in the documents may fail to comply with the required standards of real estate in a particular area.
- Failure to follow the recommended procedure whenever filling property records.
The above reasons can hinder proper conveyancing. To avoid title defect, NTC has prepared records and reports to guide property buyers. These records are available on their website. They include; Tax Status Report, the report of the current owner, and Assignment verification report among others.
How are the Records and Reports Prepared?
NTC has prepared these reports based on the available land records for the residential property. Although the process of acquiring all these information is automated, NTC uses manual verification to reduce errors that may occur during data collection. It also obtains data from lenders to give accurate reports on the property.
National Title Clearing, Inc. Is a privately owned company that deals with the provision of research and document processing services to the resident mortgage industry. The company was founded in the year 1991 and is headquartered in Palm Harbor, Florida. The company provides the most accurate and timely records on the residential mortgage industry. It is estimated that eight out of ten residential mortgage companies in the country rely on NTC for property records. The company concentrates on the provision of land research records, reports on the property, lien release services, document tracking, and assignment services among other custom business solutions.