How To Perform a Real Estate Title Search

Comprehensive Guide to Property Title Searches: What You Need to Know

Table of Contents

• Introduction
• Step-by-Step Process
• Why Title Searches Matter
• Professional Assistance
• Conclusion

Introduction

A property title search is a crucial step in any real estate transaction. This comprehensive examination of public records reveals the history of ownership, liens, encumbrances, and other legal matters affecting a property. Whether you’re a first-time homebuyer, an experienced investor, or a real estate professional, understanding how title searches work can save you from costly legal issues and protect your investment.

What Is a Property Title Search?

A property title search is an examination of public records to determine a property’s legal ownership and uncover any claims, defects, or encumbrances that might affect the property rights. According to the American Land Title Association, title professionals examine records in the public domain to create a history of ownership and identify any issues that could impact the transfer of ownership.

When Is a Title Search Necessary?

Title searches are essential whenever property changes hands. According to the Consumer Financial Protection Bureau, conducting a thorough title search is a standard part of the home buying process. Specifically, title searches are necessary when:

• Buying or selling real estate
• Refinancing a mortgage
• Obtaining a home equity loan
• Resolving estate matters involving property
• Determining property boundaries

Step-by-Step Process

Conducting a proper title search requires attention to detail and access to the right resources. Here’s a comprehensive guide to performing an effective title search:

Gathering Essential Property Information

Begin by collecting all available information about the property, including:

• Complete property address
• Legal description from previous deeds or tax records
• Parcel or tax identification number
• Names of current and previous owners
• Any existing survey documentation

The U.S. Department of Housing and Urban Development recommends having these details on hand before beginning your search to ensure accuracy and efficiency.

Accessing County Records

The county recorder’s office (sometimes called the register of deeds or land registry) maintains official property records. According to the National Association of Counties, these offices are responsible for maintaining:

• Property deeds
• Mortgages and liens
• Easements
• Tax assessments
• Plat maps
• Foreclosure records

You can visit the physical office in the county where the property is located or, increasingly, access these records through online portals.

Utilizing Online Database Resources

Many counties now offer digital access to property records. The National Association of Realtors notes that online databases have significantly streamlined the title search process. When using online resources:

• Check the official county website for property search tools
• Search by address, owner name, or parcel number
• Review document images for complete details
• Note any fees associated with accessing or downloading documents

Tracing the Chain of Title

The chain of title is a historical timeline of ownership transfers. According to real estate experts at the Urban Institute, a complete chain of title should document:

• All previous owners
• Dates of ownership transfers
• Sale prices when available
• Type of deed used in each transfer
• Any conditions or restrictions placed on the property

Ideally, you should trace the chain of title back at least 50 years to identify potential issues.

Identifying Liens and Encumbrances

Liens are financial claims against a property that must be paid when the property is sold. The Internal Revenue Service explains that common liens include:

• Mortgage liens
• Tax liens (federal, state, and local)
• Mechanic’s liens from contractors
• Judgment liens from court cases
• Homeowners association liens

Each of these must be resolved before a clean title can be transferred.

Discovering Easements and Restrictions

Easements grant others the right to use a portion of the property for specific purposes. According to the Cornell Legal Information Institute, common easements include:

• Utility easements for power lines or pipes
• Right-of-way easements for roads or paths
• Conservation easements
• Scenic easements

Additionally, look for restrictive covenants that limit how the property can be used or developed.

Reviewing Legal Descriptions and Boundaries

The legal description defines the property’s precise location and boundaries. The American Society of Civil Engineers recommends verifying that:

• The legal description matches current survey information
• There are no boundary disputes on record
• All lot dimensions and measurements are accurate
• Any changes to the property boundaries are properly documented

Discrepancies in this information can lead to significant legal issues.

Why Title Searches Matter

Title searches protect all parties involved in real estate transactions. Understanding their importance helps emphasize why this process shouldn’t be overlooked.

Verifying Legitimate Ownership

Before any property transaction, it’s essential to confirm that the seller has the legal right to transfer ownership. The National Association of Realtors reports that title issues account for a significant percentage of delayed or canceled closings. A thorough title search:

• Confirms the identity of the current legal owner
• Reveals any co-owners or partial interest holders
• Identifies inheritance issues or probate concerns
• Detects potential fraud or forgery in previous transfers

Uncovering Financial Obligations

Liens represent debts secured by the property that generally must be paid before a clean title can be transferred. According to the Mortgage Bankers Association, undiscovered liens can result in new owners inheriting the previous owner’s debts. A title search identifies:

• Outstanding mortgages
• Property tax arrears
• Federal tax liens
• Judgment liens from lawsuits
• Child support or alimony liens
• Mechanic’s liens from unpaid contractors

Revealing Use Limitations

Restrictions on property use can significantly impact its value and utility. The Urban Land Institute notes that these limitations can affect development potential and property enjoyment:

• Zoning restrictions
• Homeowners association rules
• Deed restrictions
• Environmental constraints
• Historic preservation requirements
• Building setback requirements

Identifying Access Issues

Property access problems can dramatically reduce value. The American Planning Association explains that access issues revealed in a title search may include:

• Landlocked parcels without legal access
• Shared driveway agreements
• Disputed rights-of-way
• Limited access highways
• Revocable license agreements

Protecting Your Investment

For most Americans, real estate represents their largest investment. According to the Federal Reserve, housing wealth constitutes the majority of net worth for many households. A title search protects this investment by:

• Ensuring you receive all property rights you’re paying for
• Identifying issues before they become your problem
• Providing information needed for title insurance
• Creating a foundation for resolving any title defects
• Preventing future legal disputes

Professional Assistance

While individuals can conduct preliminary title searches, professional assistance often provides greater security and expertise.

When to Hire a Title Company

The American Land Title Association recommends professional title searches for all real estate transactions. Title companies offer:

• Access to specialized title databases
• Trained examiners who know what to look for
• Professional liability coverage for errors
• Connections to title insurance underwriters
• Experience resolving common title problems

Understanding Title Insurance

Title insurance protects against financial loss from defects in title. The Consumer Financial Protection Bureau explains that there are two types:

• Owner’s title insurance (protects the buyer)
• Lender’s title insurance (protects the mortgage company)

Unlike other insurance forms, title insurance involves a one-time premium for protection against past (unknown) issues rather than future events.

Working with Real Estate Attorneys

In some cases, particularly with complex properties or known title issues, a real estate attorney provides valuable assistance. The American Bar Association notes that attorneys can:

• Interpret complex legal descriptions
• Resolve gaps in the chain of title
• Address boundary disputes
• Navigate title clearance procedures
• Represent you if litigation becomes necessary

Conclusion

A thorough property title search is an essential step in any real estate transaction. By examining public records for ownership history, liens, easements, and other issues, you protect yourself from unwelcome surprises and potential financial losses. Whether you conduct preliminary research yourself or rely entirely on professionals, understanding the process helps you make informed decisions about one of life’s most significant investments.

Remember that while this guide provides comprehensive information about the title search process, real estate transactions involve complex legal matters. For specific situations, consulting with qualified professionals—title companies, real estate attorneys, or experienced realtors—remains the best practice for protecting your interests.