A Title Search Report is an analysis carried out by a lawyer about the legal situation of a real estate, which is developed from the study of deeds, official letters, sentences, among others, registered in the tradition certificate and freedom of the property , during the last 10 years, in order to issue a legal diagnosis regarding the feasibility or not of any negotiation to be seen on the property analysis.
To delve into this definition, it is necessary to clarify two points:
1. What is a tradition and freedom certificate?
It is the document that can be defined as the property life sheet, in which all its history and its quality are recorded, such as: house, apartment, commercial premises, parking lot, warehouse, warehouse, farm or if it is a rural lot or urban. This document contains the property's owners history, specifying in detail each legal act that has represented some affectation for it, such as: if it is subject to the horizontal property regime, if it is seized, mortgaged, or if there are one or more owners. Likewise, it registers legal acts such as: purchases, successions, donations, usufructs, appraisal liens, false traditions, affectation of family housing and unattachable family assets, among other acts, which by legal mandate, must be registered by the registration circle's registry office to which the property belongs, according to its geographical location.
2. Why is the search report carried out on the last 10 years titles?
The study is carried out on the registered titles in a period of 10 years because the legal actions that can be taken on possible problems that the property has prescribe 10 years from the date of celebration of the registered act. For example, an action to terminate the contract derived from a resolutive condition prescribes after 10 years.
How do you know if you need a Title Search Report?
If you are going to carry out a negotiation on real estate to obtain the property right and you want to make sure you have a clear overview of its legal situation, which allows you to foresee if the exercise of your right over the property is fully exercisable or can be potentially threatened by some encumbrance or limitation to the domain, you definitely need a study of titles.
We recommend you keep in mind that: although it is not a legal requirement, a title search report is recommended when you are going to carry out a negotiation on a property that consists of: buying, leasing for a long-term, commercial purpose or receiving an obligation as collateral.
Which party has to do it:
- Sale: to the buyer
- Leasing: to the lessor. Especially if it is long-term lease contracts, eg 10 years, 20 years as usual for large stores, franchises or restaurant chains.
What documents are required to carry out a Title Search Report?
Public deeds, official letters and/or sentences registered in each and every one of the annotations from 10 years ago, counted from the date of opening of the real estate registration file.
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