Usually, prior to marketing a property with the agent and brokerage firm, you must have a reasonable belief that the individual offering the home has the legal right to sell it.
The process begins with a title search. The search looks at public records. It records the chain of ownership of the property and identifies current record owner, legal description, mortgages, tax liens, judgments, easements and other claims.
The recorded deed is usually the most important document. A deed will tell who got title in the last recorded transfer and if the property is owned by an individual, married couple, trust, corporation or limited liability company. The name on the deed should match the name on the listing agreement. If not, the agent must find out who has authority to act.
That authority can also mean more paper work. If the owner is deceased the property may be in probate with an executor or administrator. Trustee may be required to furnish trust documentation or certification of trust.
Agents also check identity to reduce the risk of seller impersonation, a growing form of real-estate fraud that targets vacant land or unoccupied homes. Brokerages might ask for a government-issued ID, check signatures against one on file, confirm contact information and use independent means to confirm the seller. Some title companies also do additional anti-fraud checks, like looking at notary records and inconsistencies in the history of ownership.
A clean title search does not necessarily mean a sale can close immediately. Unpaid taxes, contractor claims, divorce proceedings, boundary disputes or unreleased mortgages may need to be resolved first. The buyer’s lender will generally require an owner’s title insurance policy, which protects against certain pre-existing title defects. Title insurance, however, is not a substitute for careful review before a listing is advertised.
The practical rule is simple: a listing agreement authorises an agent to market a property, but it does not prove that the signer owns it. Ownership is established through recorded documents, identity checks and when necessary, evidence that the signer has legal authority to sell.