What Is a Title Search?

By Kayla Kesson Updated April 24, 2024
Reviewed by Alex Goldovsky

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What is a Title Search?

A title search is an indispensable process in real estate transactions, where public records are scrutinized to confirm a property’s legal ownership. It involves reviewing documents such as deeds, tax liens, court judgments, and land records to identify any claims, liens, or encumbrances that may affect the property.

Definition and Purpose

The purpose of a title search is to ensure that the property can be legally transferred without any hidden problems that could affect the new owner’s rights or finances. This is crucial for maintaining legal clarity and avoiding future disputes or financial losses.

Types of Title Searches

Current Owner Search: Focuses on verifying the chain of title linked to the current owner.
Two Owner Search: Reviews the title history that includes the immediate past owner, providing a deeper verification.
30-Year Search: Examines the title records over the past 30 years to uncover any long-standing issues.
Full State Statute Search: A comprehensive search that adheres to specific state laws to ensure all statutory requirements are met.

Key Components Analyzed During a Title Search

Deeds: Establish the chain of ownership.
Liens: Reveal claims by creditors.
Encumbrances: Include easements or leases affecting the property.
Judgments: Uncover legal judgments that might impact ownership.

Importance of a Clear Title

Having a clear title means the property is free from liens, disputes, or any legal questions concerning the ownership of the property. This clarity is essential for ensuring that the property sale or transfer can proceed without legal complications.

How Title Searches Protect Buyers

A detailed title search can identify potential issues that a buyer may need to address before completing a purchase:

Liens: From creditors that could seek to claim property.
Encroachments: That might lead to disputes.
Easements: That could limit the use of the property.
Legal Judgments: That might impose financial obligations on the new owner.

Example Of The Title Search Process

A title search is one key piece to the property buying process. It is usually managed by a title search company, independent abstractor, or the prospective buyer’s attorney. The title search may also be initiated by a mortgage lender or investor to verify legal ownership, as well as possible claims against the property. The abstractor will begin by locating the property in the county’s assessment records. Here they can obtain important property characteristics such as the parcel number (a sequence of numbers used to identify a property), legal description (the geographical description that identifies a property’s exact location), owner’s name and assessed values. The abstractor will then research the property tax status. At minimum, the current year’s tax status will be reported, as well as any prior delinquencies. The report will also indicate if delinquent taxes have been sold, leaving the property at risk for tax foreclosure.

It’s at this point that the actual search begins for property related documents. The abstractor will either conduct this search in the county recorder’s office or online records. In order for a document to be effective, it must be recorded in the county’s public land records. Once a document is drafted, it is sent to the county recorder’s office where it is verified and recorded. This makes it an official document. All recorded documents get assigned a document number and are entered into a searchable database. Documents affecting a specific property will contain the legal description and parcel number associated with the property. The abstractor will search the records using the expected current owner’s name, only including those which contain the legal/parcel number for the property in question.

The Role of Title Insurance

Despite thorough title searches, some risks, like clerical errors or undiscovered claims, might remain. Title insurance protects against such eventualities by covering potential financial losses due to defects in the title not identified during the initial search.

Owner's Policy: Covers the new owner against any title discrepancies.
Lender's Policy: Protects the lender's interest in the property.

Common Mistakes and Misconceptions

Scope of Search: Buyers sometimes misunderstand the extent of the search, assuming all potential issues will be uncovered.
Document Misinterpretation: Misreading the documents found in a title search can lead to overlooking significant issues.
Ignoring Professional Advice: Not consulting with a real estate attorney can lead to missteps in handling found issues.

Detailed Steps in the Title Search Process

A title search involves several crucial steps to ensure thoroughness and accuracy:

Identifying Relevant Documents: The process starts by identifying all relevant documents associated with the property’s history. This includes deeds, wills, trusts, divorce decrees, court judgments, tax records, and liens.
Chain of Title Examination: The examiner reviews the sequence of historical property transfers from one owner to another. Each transaction is checked to ensure it was completed legally.
Encumbrance and Lien Search: The search also includes a review of any encumbrances that may affect the property. Encumbrances might include liens for unpaid taxes, construction liens, or other creditor claims that could impede a clear transfer of title.
Assessment of Compliance with Local Laws: In some jurisdictions, local laws might impose additional requirements for a title to be considered clear, such as specific disclosures or inspections.
Final Review and Reporting: The final step is compiling the findings into a comprehensive report that outlines any potential issues with the title that might need to be resolved before the transaction can proceed.

What is title search — Professional Services Title

Why Professional Guidance is Crucial

Navigating the complexities of title searches and interpreting the results can be challenging without legal expertise. Here’s why professional guidance is indispensable:

Expert Interpretation: Professionals, such as title agents or real estate attorneys, are skilled in interpreting the legal documents and understanding the implications of various findings.
Handling Complex Issues: Some issues uncovered during a title search, such as disputes over property boundaries or unclear succession in ownership, require legal expertise to resolve.
Negotiating Resolutions: Professionals can help negotiate solutions to title issues, such as obtaining releases for old liens or correcting deeds.

Addressing Issues Found During a Title Search

Upon identifying issues in a title search, immediate action is required:

Clearing Liens: Negotiate with lienholders to pay off or resolve liens.
Correcting Recording Errors: Work with legal counsel to correct any errors in the public records, such as misspellings or incorrect property descriptions.
Resolving Disputes: Engage legal help to resolve disputes related to property boundaries or ownership claims.

Ensuring a Successful Real Estate Transaction

To ensure a smooth and successful transaction, consider the following best practices:

Comprehensive Title Search: Opt for the most thorough search available to uncover as much historical information as possible.
Purchase Title Insurance: Even after a thorough search, unforeseen issues can arise. Title insurance provides financial protection against such problems.
Regular Updates: In dynamic real estate markets, new liens or judgments can appear quickly. Regular updates to the title search can prevent last-minute surprises.

How Long Does A Title Search Take?

While other title companies may take a week or longer to produce a title report, ProTitleUSA's highly trained staff can complete title searches faster, without jeopardizing quality. A residential title search can generally be completed within 24 to 48 business hours. A commercial title search may take closer to 72 business hours. Location of the property and complexity of the search determine how long the report will take. For reports needed sooner, the search can be expedited for an additional fee and returned within four business hours. Best of all, orders can be placed online at any time - day or night - using our website! Confirmation will be emailed upon receipt of the order request. Once the report has been completed, a single PDF containing the title search and our easy-to-read summary sheet will be emailed to you.

Final Thoughts On Conducting A Successful Title Search

A detailed title search is more than just a routine step in buying property—it's a vital practice that protects buyers from significant risks and financial losses. By understanding the full scope of what a title search entails and the potential issues it can reveal, buyers can make informed decisions and ensure a legally sound transaction.

Engaging with professionals, understanding the potential complexities involved, and taking proactive steps to address any issues are essential strategies for navigating the complexities of real estate transactions. Always consult with a real estate attorney to ensure that any findings from a title search are appropriately addressed, ensuring a secure and lawful transfer of property ownership.