Table of Contents
- What Is a Title Search?
- Key Takeaways
- Understanding the Title Search Process
- Important Considerations Before Completing a Property Purchase
- Clarifying Dirty vs. Clean Titles
- The Role of Title Insurance in Property Transactions
- Example: Conducting a Title Search
- How Do You Do a Title Search?
- How Long Does a Title Search Take to Complete?
- Can Someone Do a Title Search on Their Own?
- What Does a Title Search Tell Me?
- The Bottom Line
What Is a Title Search?
Let me explain what a title search is: it's a process where we examine public records to verify who owns a property and to spot any existing claims or liens on it. This is usually handled by title companies, and it's essential for closing real estate deals, making sure the title is clean, and smoothing out the purchase. If you're buying or lending, understanding this can shield you from legal headaches down the line.
Key Takeaways
Here's what you need to know right away. A title search looks at public records to confirm legal ownership and find any claims or liens. It's done by title companies or individuals to ensure a clean title before any property deal. Title insurance steps in to protect you and your lender from losses if hidden defects pop up after the sale. A clean title means sole ownership, but a dirty one points to unresolved issues that could block the transfer. While you could try doing it yourself, I recommend professionals because legal docs are tricky and access isn't always easy.
Understanding the Title Search Process
As I mentioned, a title search checks if a property has a clean title or if there are liens, defects, or errors in public records that could stop a transfer. This happens in real estate transactions like buying homes or even cars. Typically, a title company or attorney does this for a potential buyer who's ready to make an offer. Lenders might also request it to confirm ownership and check for claims before approving a loan with the property as collateral.
To carry it out, they dig into public records and legal documents to identify the owner, any liens, judgments, loans, or unpaid taxes. I don't advise doing this on your own—legal stuff can be confusing, and getting to courthouse records is often a hassle. By the way, if you're a homeowner looking to refinance, you might want to run a title search too.
Important Considerations Before Completing a Property Purchase
Before you close on a home as a buyer, an attorney or title company will search public records on the property's ownership. You'll get a preliminary title report once it's done. If issues show up, bring them to the seller's attention. Depending on what's wrong, you can decide if you still want to go through with the buy. Get your attorney and real estate agent involved in these talks—some problems are simple fixes, but others could kill your loan approval.
Clarifying Dirty vs. Clean Titles
A title search confirms legal ownership and spots any claims on the property. A clean title means sole ownership without complications, but a dirty title suggests uncertainty or problems hanging over it. Things like bad surveys or unresolved code violations can cause a dirty title. For example, there might be unknown liens, or a county clerk could have messed up the spelling or filing when registering it. Keep in mind, in some private deals without title insurance, sellers might offer a warranty of title, guaranteeing they can transfer ownership and no one else has rights.
The Role of Title Insurance in Property Transactions
Even pros can miss things in a title search, or paperwork errors might overlook documents. These slip-ups can cost you big if problems emerge after you buy. That's where title insurance comes in—it protects you and your lender from losses due to title issues during or after the sale. It covers losses from liens, encumbrances, or defects in ownership. Unlike regular insurance for future events, this one guards against past problems.
What a Basic Owner's Title Insurance Policy Covers
- Ownership by another party
- Incorrect signatures on documents, plus forgery and fraud in title docs
- Defective recordation, like flawed records or keeping
- Restrictive covenants that cut value or enjoyment, such as unrecorded easements
- Encumbrances or judgments, like outstanding lawsuits or liens
Example: Conducting a Title Search
Let's walk through a hypothetical to show how this works. Say you want a bigger home and find one you like more than others, so you make an offer. As the buyer, you hire a title company to ensure no liens, encumbrances, or defects block the purchase. They gather relevant legal docs from public records, courthouses, and county offices, then compile everything for you. If the title's clear, proceed with the deal. If not, the transaction stops—some fixes are easy, like clerical errors, but liens are tougher.
How Do You Do a Title Search?
Title searches are usually done through a title company that checks public records for liens. They're hired during home sales and might help with closing. You can do it yourself by checking records online or in person at the county clerk's or tax assessor's office.
How Long Does a Title Search Take to Complete?
On average, it takes 10 to 14 days, but older properties might take longer.
Can Someone Do a Title Search on Their Own?
Yes, you can, though companies usually handle it. Start with the property's street and legal address, then check public records online or in person at the clerk's or assessor's office for liens. It's tedious, time-consuming, and can be expensive.
What Does a Title Search Tell Me?
It reveals the legal owner and any outstanding claims or liens from lenders, contractors, tax collectors, or others with financial claims.
The Bottom Line
Doing a title search is key in real estate to confirm ownership and spot liens or claims. Title companies or attorneys handle it to ensure a clean title for smooth deals. Despite the legal complexities, prioritize this or get pro help to avoid future losses. Title insurance adds protection for any past errors that surface later.
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