Title Search: What It Is, How It Works, and Why It Matters

Quick summary
* A title search examines public records to verify legal ownership and reveal liens, judgments, or other claims on a property.
* Title searches are typically done by title companies or attorneys and are a standard part of real estate closings.
* Title insurance protects buyers and lenders against financial loss from undiscovered or past title defects.

What is a title search?
A title search is the review of public records and legal documents to confirm who legally owns a property and to identify any encumbrances (liens, judgments, easements, restrictive covenants) that could affect ownership or transfer. It’s used in most property transactions to establish whether the title is “clean” and marketable.

Why a title search matters
* Protects buyers and lenders from hidden claims that could interfere with ownership.
* Identifies outstanding mortgages, tax liens, mechanic’s liens, court judgments, and other defects.
* Helps determine whether a property can be transferred clear of third‑party rights.
* Can influence whether you proceed with a purchase, negotiate fixes, or require additional protections (like title insurance).

How the title search process works
1. Request and scope
* The buyer, lender, or their representative requests the search—usually during escrow or before loan approval.
2. Records review
* A title company or attorney searches public records at county offices, courthouses, and online databases for deeds, mortgages, liens, probate records, tax records, easements, and judgments.
3. Title report
* The searcher compiles findings in a preliminary title report or abstract that lists ownership history and any encumbrances.
4. Resolution of defects
* Issues discovered are addressed before closing: liens may be paid off, clerical errors corrected, or sellers may provide warranties or indemnities. Some defects may prevent closing.
5. Closing and insurance
* If the title is cleared or resolved, the transaction proceeds. Many buyers and lenders purchase title insurance to protect against defects not caught by the search.

Clean vs. dirty title
* Clean title: No competing claims, liens, or unresolved legal problems — ownership can be transferred without issue.
* Dirty (clouded) title: Contains errors, omissions, unidentified liens, unresolved surveys or code violations, or clerical mistakes that raise questions about marketable ownership.

Title insurance: what it covers and why it’s used
* Purpose: Title insurance protects against financial loss from past title defects that were not discovered during the search (for example, forged signatures, undisclosed heirs, or recording errors).
* Scope: Unlike regular insurance (which protects against future events), title insurance covers claims arising from events in the past that affect ownership.
* Common hazards covered:
* Another party claiming ownership
* Forgery or fraud in title documents
* Defective recordation or clerical errors
* Unrecorded easements or restrictive covenants
* Outstanding liens, judgments, or encumbrances
* Who buys it: Typically, both lenders (lender’s policy) and buyers (owner’s policy) obtain title insurance.

Practical example
You make an offer on a house. A title company searches public records and finds a tax lien from a previous owner. The seller must clear the lien before closing, or the parties renegotiate or cancel the sale. If the lien had been missed and surfaced after purchase, title insurance could cover the resulting loss.

Common questions (brief)
* How long does a title search take?
* Usually 10–14 days; older or complex properties can take longer.
* Can I do a title search myself?
* Yes, by researching county clerk, recorder, and tax assessor records online or in person, but it can be time-consuming and legally complex. Professionals are recommended.
* What does a title search tell me?
* The legal owner’s name and any recorded claims, liens, mortgages, judgments, easements, and other encumbrances on the property.

Actionable advice
* Always require a title search before closing a real estate purchase.
* Review the preliminary title report carefully with your attorney or agent.
* Consider owner’s title insurance to protect against latent defects that a search might miss.
* Address any title defects before completing the transaction.

Conclusion
A thorough title search is a fundamental safeguard in real estate transactions. It confirms legal ownership, reveals encumbrances that could block transfer, and helps buyers and lenders decide how to proceed. Because searches can miss historical or clerical problems, title insurance is commonly purchased to provide additional protection against post‑closing claims.