Whether you’re a first-time buyer nervously awaiting your keys, a seasoned investor ensuring your next flip is clean, or a real estate professional guiding clients—understanding the why verifying the chain of title matters before closing is essential. It’s the unsung hero of real estate transactions, helping ensure the property you’re buying has a clear and marketable title.
In this article, we’ll walk you through what a title search includes, why it matters, how it protects your investment, and what red flags to look out for—all in a clear, digestible format.
What Is a Title Search?
A title search is a detailed examination of public records related to a property. The goal? To verify the legal ownership of the property and identify any issues—like liens or unpaid taxes—that could disrupt or delay the sale.
Think of it as a background check for a home.
Step-by-Step Breakdown: What’s Included in a Title Search?
Here’s a structured view of what’s reviewed during a title search:
1. Deed History Review
- Looks at all prior deeds (legal ownership documents) to confirm:
- Continuous, legal transfer of ownership
- Proper recording in county records
- No gaps in ownership (aka a broken chain of title)
2. Public Records Check
Title companies dig through:
- County land records
- Tax records
- Court documents
- Probate filings
They’re searching for:
- Delinquent taxes
- Bankruptcies
- Lawsuits involving the property
3. Lien and Judgment Search
Liens are claims against a property for unpaid debts. Common types:
- Mortgage liens
- Contractor’s/mechanic’s liens
- IRS or state tax liens
- Court judgments
4. Easements and Restrictions
These affect how you can use the property.
Examples:
- Utility companies having access to part of your land
- HOA restrictions on what color you can paint your home
5. Encroachments
Encroachments happen when a structure crosses into another person’s land. This can lead to disputes or legal action.
6. Name Index Search
Checks if the owner’s name is linked to:
- Judgments
- Bankruptcies
- Divorce settlements involving the property
✔ Ensures nothing is tying up ownership due to unrelated legal matters.
Confirms all taxes are paid up and checks for:
- Special assessments (e.g., city sewer upgrades)
- Pending tax sales
Comparative Perspective: Title Search vs. Title Insurance
| Feature | Title Search | Title Insurance |
| Purpose | Identify existing title issues | Protects against undiscovered issues |
| Timing | Before closing | After closing |
| Who benefits | Buyer, lender | Buyer, lender |
| Cost | $100–$400 (varies) | $500–$1,000 (one-time premium) |
Actionable Tips for Buyers
Here are steps you can take to protect your investment:
- Work with a reputable title company or attorney
- Ask for a copy of the preliminary title report
- Clarify unfamiliar terms with your real estate agent
- Check for red flags like unpaid taxes or recent liens
- Ensure your title insurance policy matches your understanding of the search results
Did You Know?
- Over 25% of title searches reveal an issue that needs to be fixed before closing.
- Even misspelled names in past documents can delay a deal.
Use this property title search checklist (external link) to make sure you don’t miss anything.
FAQs:
1. How long does a title search take?
Usually 3–7 business days, but delays can occur if documents are missing or unclear.
2. Who pays for the title search?
In most cases, the buyer pays, but this can be negotiated in the purchase agreement.
3. Can a title search miss something?
Yes, which is why title insurance is recommended—it protects against unknown issues.
4. Is a title search required for all home purchases?
Yes, especially if financing is involved. Lenders typically require it to protect their investment.
5. What happens if a title issue is found?
It must be resolved—either by the seller or negotiated during closing. Some issues can delay or even cancel a sale.
Conclusion:
Buying real estate isn’t just about finding the perfect home—it’s about securing legal ownership. A title search helps you avoid future headaches by uncovering problems before they derail your deal.
Whether you’re a first-timer or a seasoned investor, knowing what a title search includes empowers you to ask the right questions, read reports with confidence, and protect your purchase.
Next Step: Contact your title company or real estate agent to review your preliminary title report.
Or try using a Title Insurance Calculator to estimate your costs.
