A title search ensures a property has clear ownership before closing, protecting both buyer and lender. The steps involved in issuing title insurance include initiating a public records search, identifying liens or legal issues, resolving defects, and issuing a title abstract and commitment. Once the title is clear, insurance is offered to safeguard against future claims. This process is essential in any mortgage transaction to avoid costly surprises and delays
In this guide, you’ll learn:
- What a title search is and why it matters
- Step-by-step breakdown of the process
- Common issues found during a search
- The difference between title search and title insurance
- FAQs from homebuyers like you
What Is a Title Search in Real Estate and Mortgages?
At its core, a title search is the investigation of public records related to a property to confirm the seller has the legal right to transfer ownership and that the property is free of unresolved legal claims.
Why It’s Critical in the Mortgage World
A mortgage lender uses the title search to protect their investment. If ownership isn’t clean and clear, the lender won’t approve the loan until the issues are resolved.
A thorough title search reviews:
- Property deeds (chain of ownership)
- Mortgage liens
- Judgments
- Unpaid taxes
- Covenants, conditions & restrictions (CC&Rs)
- Probate or divorce-related claims
According to the American Land Title Association, 1 in 3 real estate transactions encounter title issues that must be resolved before closing.
Title Search Explained: What Happens Before You Get the Keys
Let’s walk through the detailed process of a title search from the moment your offer is accepted to the day you close.
1. Initiation by Lender or Title Company
Once your mortgage application is in motion and a closing date is set, the lender or your closing attorney orders a title search through a title company or real estate attorney’s office.
2. Search of Public Records
The title agent or examiner will inspect:
- County land records
- Tax assessor’s office
- Court judgments and bankruptcy filings
- Previous title transfers
- Easements (e.g., utility or access rights)
They’ll examine what’s called the “chain of title” — the sequence of historical transfers of ownership. If any part is missing or improperly documented, that’s a red flag.
3. Identification of Liens or Encumbrances
This is where things often get messy. Common issues include:
- Unpaid property taxes
- Mechanic’s liens from contractors
- HOA fines
- Judgments from lawsuits
- Child support or divorce-related claims
These must be cleared or resolved before the title can be transferred.
4. Title Abstract & Commitment
The title company creates a title abstract, summarizing the findings, and a title commitment, which outlines what must be cleared before issuing title insurance.
5. Resolution of Defects (If Any)
If there are clouds on the title, the seller must resolve them. This could involve:
- Paying off liens
- Getting court releases
- Correcting recording errors
Your mortgage loan won’t fund until the title is clear.
6. Issuance of Title Insurance
Once the title is deemed clear, you’ll be offered:
- Lender’s title insurance (mandatory)
- Owner’s title insurance (optional, but highly recommended)
Common Problems Found During a Title Search
| Issue | Description | Risk |
| Unknown Liens | Past owners left unpaid debts tied to the home | You inherit the debt |
| Forgery or Fraud | False documentation or identity theft in past transfers | Legal disputes over ownership |
| Boundary Disputes | Survey conflicts or encroachments | Costly legal battles |
| Undisclosed Heirs | A rightful heir claims interest in the home | Ownership can be challenged |
| Public Record Errors | Misspellings or incorrect legal descriptions | Delays and extra costs |
Title Search vs. Title Insurance: Know the Difference
While they go hand in hand, they serve distinct purposes.
| Feature | Title Search | Title Insurance |
| Purpose | Verifies ownership and finds issues | Protects against hidden future claims |
| Timing | Before closing | At closing |
| Who it Protects | Buyer & lender | Lender (mandatory), Buyer (optional) |
| Cost | Typically included in closing | One-time fee, $500–$1,200 |
| Coverage | Known issues | Unknown risks |
Pro Tip: Always opt for owner’s title insurance. It’s a one-time cost that can save you from future legal battles.
How to Prepare for the Title Search Process
Even though most of this is handled by professionals, smart buyers stay involved.
Step-by-Step Preparation:
- Work with a Trusted Title Company or Attorney
Choose experienced professionals who specialize in your local market. They’ll know what issues are common in your area. - Review the Preliminary Title Report
Look out for red flags:- Liens
- Legal descriptions that don’t match
- Names you don’t recognize on the title
- Communicate with Your Lender and Real Estate Agent
Make sure all parties are aligned on what’s needed before closing. - Budget for Title Insurance
While optional, this is a smart investment to protect your homeownership.
Title Search & Mortgages
What is a title search in a mortgage closing?
It’s a legal review of public records to ensure the seller owns the home and that there are no legal barriers to the transaction.
Who pays for the title search?
Typically, the buyer pays through closing costs, though this can vary by region or negotiation.
Can I close without a title search?
If you’re using a mortgage, no. The lender requires a clear title before funding. Even cash buyers are advised to conduct a search.
How long does a title search take?
Anywhere from 3–10 business days depending on the jurisdiction and property complexity.
Is title insurance worth it?
Yes, especially owner’s title insurance. For a one-time fee, it covers you against unknown future title defects.
Conclusion:
A title search might not be the most glamorous part of buying a home, but it’s absolutely essential. It protects your ownership rights, your lender’s investment, and your peace of mind.
Without a clear title, you could face unexpected debts, legal disputes, or even lose the home you just bought.