What is a Title Opinion?
Before closing on the sale of real estate in the state of Iowa, commonly the buyer’s or lender’s attorney will perform a title opinion. A title opinion is a review of the property’s abstract of title to determine if the seller holds marketable or good title to the property.
To perform the title opinion, the attorney will need the property’s abstract of title after it has been brought up to date. The abstract generally consists of deeds, mortgages, and other documents that are part of the public record affecting title to the property.
The title opinion is important for the buyer because it will indicate if the seller actually holds marketable title to the real estate that is being transferred in the real estate transaction. The title opinion will also indicate if the abstract shows any judgments, mortgages, liens or any other encumbrances that cloud title. In the event there is such an encumbrance that raises questions about the seller’s title to the property, some action may be need to be taken to cure the encumbrance before closing.
If you would like more information about title opinions or have questions regarding a real estate transaction, feel free to contact the attorneys at the Crimmins & Kehm Law Firm at 515-573-2191.