Title Search: Understanding Property Title Research

When purchasing real estate, one of the most critical steps in the transaction process is conducting a thorough title search. This comprehensive examination protects buyers, sellers, and lenders from potential legal and financial complications that could derail a property transaction.

What is a Title Search?

A title search is a detailed investigation of public records to verify the legal ownership of a property and uncover any claims, liens, or encumbrances that could affect the transfer of ownership. This process examines the complete chain of ownership, tracing all recorded transfers and conveyances throughout the property’s history.

The primary goals of a title search include:

• Confirming the current legal owner of the property
• Identifying outstanding liens or judgments
• Discovering easements or restrictions
• Uncovering potential title defects or “clouds on title”
• Verifying the property can be legally transferred

Who Performs a Title Search?

Title searches are typically conducted by experienced professionals, including:

Title Companies: Specialized firms that research property records and issue title insurance policies to protect against future claims.

Real Estate Attorneys: Licensed lawyers who examine public records and provide legal opinions on title status.

These searches are usually initiated by potential buyers or their mortgage lenders before finalizing a property purchase. Lenders require title searches to ensure the property can serve as adequate collateral for the loan and that no hidden claims exist that could jeopardize their investment.

The Title Search Process

The title search process involves several key steps:

1. Public Records Research

The title professional examines county and municipal records, including:

• Deed records showing ownership transfers
• Court records for judgments and liens
• Tax records for outstanding property taxes
• Probate records for estate-related claims
• Marriage and divorce records that may affect ownership

2. Chain of Title Review

Researchers trace the property’s ownership history chronologically, verifying each transfer was properly executed and recorded. This chain of title must be unbroken to confirm clear ownership.

3. Preliminary Title Report

Once research is complete, the title company issues a preliminary title report outlining:

• Current ownership information
• Any liens or encumbrances found
• Exceptions to title insurance coverage
• Requirements for clearing title defects

Common Issues Discovered During Title Searches

A properly conducted title search can reveal various problems that may need resolution before closing:

Financial Encumbrances: Outstanding mortgages, home equity lines of credit, unpaid property taxes, or contractor liens can attach to the property and must be satisfied before transfer.

Legal Claims: Judgments against previous owners, divorce settlements, or estate claims may cloud the title and require legal action to resolve.

Easements and Restrictions: Rights of way for utilities, neighboring property access, or homeowner association rules may limit how you can use the property.

Recording Errors: Mistakes in public records, incorrect legal descriptions, or improperly filed documents can create title defects that need correction.

Boundary Disputes: Conflicting surveys or encroachments from neighboring properties may require resolution before closing.

Some issues can be resolved quickly with minimal cost, while others may require extensive legal work or negotiation with previous owners and creditors.

The Importance of Title Insurance

Even with a thorough title search conducted by experienced professionals, human errors can occur. Recording offices may incorrectly index documents, or paperwork errors may cause important records to be overlooked. These mistakes can lead to costly delays or legal disputes after purchase.

Title insurance protects both buyers and lenders from financial losses due to title defects discovered after closing. Unlike other insurance types that protect against future events, title insurance protects against past events that weren’t discovered during the initial search.

There are two types of title insurance policies:

Owner’s Policy: Protects the buyer’s investment in the property for as long as they own it.

Lender’s Policy: Protects the mortgage lender’s interest and is typically required for financed purchases.

Best Practices for Property Buyers

When purchasing real estate, always:

• Hire qualified professionals to conduct your title search, whether a reputable title company or experienced real estate attorney
• Review the preliminary title report carefully and ask questions about any exceptions or concerns
• Purchase owner’s title insurance to protect your investment from undiscovered defects
• Allow adequate time for the title search process, typically 2-4 weeks depending on property complexity
• Work with your title professional to resolve any issues before closing

Understanding the marketability of a property title is essential before completing any real estate transaction. A clear title ensures you receive full ownership rights without hidden claims that could jeopardize your investment.

For more detailed information about title searches and property records, visit US Title Records or consult with a qualified real estate professional in your area.

Related Topics: Property liens, Real estate closing process, Due diligence in real estate