To leave the lien in place can make the property unmarketable if the buyer ever elects to resell the property. For all of the foregoing reasons, it is important that the buyer of any parcel of real estate be assured that title is free and clear of liens at the time of acquisition. For the truly sophisticated buyer it is possible for the buyer to visit the office of the County Recorder and personally check the records. This is a time consuming and laborious task requiring an understanding of how the recording system works. Most often the buyer seeks the aid of a title company to do this work.
Title companies can provide a report indicating what their investigation of the records revealed.
Such a report, standing alone, provides no guarantees and it is merely good faith statement of what the title company believes to be the status of title. If the title report is incorrect there is normally no recovery against the title company. As an alternative, the title company will provide title insurance which has the effect of insuring the status of title as it is reflected in the Policy of Title Insurance. When the recording of the deed is conducted by a title company providing title insurance, the buyer can be assured that the deed will not be recorded unless title is clear. Summary As can be seen above, the costs incurred to assure the buyer of the benefit of the internet bargain can be significant and some people feel that the costs for protection are disproportionate to the basic purchase price of the product.