Title Search
A title search is a detailed examination of public records to establish the legal ownership history of a property and identify any liens, encumbrances, easements, or defects that could affect the transfer of clear title to the buyer.
What This Means
How a Title Search Works
A title company or attorney reviews county recorder records, court filings, tax records, and other public documents to trace the chain of ownership for the property. The search typically covers of recorded history, depending on the title company and state requirements. The examiner looks for any breaks in the chain of title, outstanding mortgages or liens, unpaid property taxes, judgments against the property owner, and easements or restrictions that affect property use.
Common Issues Found
Title searches may reveal problems that must be resolved before closing. Common findings include:
- Outstanding liens from unpaid taxes, contractors, or HOA assessments
- Unreleased mortgages from previous transactions where the lien was paid but never formally discharged
- Boundary disputes or easements that affect property rights
- Errors in public records such as misspelled names, incorrect legal descriptions, or recording mistakes
- Claims from unknown heirs or prior owners
Title Insurance and Closing
After the title search is complete, the title company issues a preliminary title report or commitment for title insurance. The lender requires a lender's title insurance policy to protect its interest in the property. Buyers may also purchase an owner's title insurance policy for their own protection. Title search fees typically range from , separate from the title insurance premium. Unresolved title issues can delay or prevent closing until the defects are cured.