Most property buyers are familiar with the certificate of title that proves ownership. However, this document does not contain the history behind a property. Buyers must conduct a complete title search to discover previous owners and possible encumbrances affecting legal ownership.
A title search examines public property records to ensure the title is free and clear. For example, a house may not be free to sell if the seller has pending HOA dues, unpaid property taxes, or a lien from a judgment. If someone buys such a property, they may inadvertently inherit these obligations and liabilities.
Title abstractors and attorneys help consumers extract all available information on a property they wish to buy. Some buyers who want to save money may prefer to do it themselves. Whether they hire an attorney or a title company, prospective buyers should understand the steps involved so they can oversee the title search.
What is a Property Title Search?
Unlike a certificate of title or a bill of sale, a property title is not a tangible document. Instead, it is a concept that proves ownership. You must review the records dating back to the initial property owner.
A proper title search reveals whether the seller is the rightful owner, whether other entities claim stakes in the property, and whether there are liens that must be satisfied before the sale.
Consumers can find the information by reviewing the following records:
- County land records
- Deeds
- Property plats (plans of divisions and boundaries)
- Tax liens
- Construction liens
- Divorce court cases
- Bankruptcy court records
- Probate court cases
- Judgments
Investors will generally follow the steps outlined in the following section.
How to Perform a Property Title Search
Buying property involves searching through listings, attending open houses and viewings, and settling on the best fit. However, that's just the beginning: there is a more critical search to complete.
You must ensure that the person selling the real estate is the rightful owner. Additionally, buyers must uncover and either agree to shoulder any attached financial obligations or walk away.
The more information buyers have, the better the decisions they make. To uncover those details, individuals must review records, sometimes dating back decades, depending on how old a property is.
As mentioned, you can perform the search yourself. However, remember that lenders and title insurers require that a professional do the job.
Steps to performing a property title search
Below are the main steps for conducting a title search.
- Conduct an online search of your county's records on the state website. Here, you may find deeds and other information available online.
- Go through the tax records to confirm that there are no outstanding taxes or liens.
- Confirm that there is a clear title chain. For example, if the original owner, Mr. A, transferred the title to Mr. B, and Mr. D sold it to Mr. F, there is a missing link between Mr. B and Mr. D. An explanation for the break in the chain is necessary for the sale to proceed.
- Review the abstract title. This summary tells a brief history that may highlight any issues with the title.
- Note down your findings. Keeping a record ensures you remember to bring them up when discussing with the seller. You also consider them in your final decision.
- Resolve any issues with the seller. Some sellers may be willing to pay pending obligations to set them free to sell. Others may include them in the closing costs. If someone is unwilling to resolve the issues and they are too expensive to inherit, it may be wise to withdraw your offer.
There are several advantages of title search. A homeowner may do so to check for the validity of their title certificate while buyers perform a title search to protect their investment.
What are 3 Advantages of a Property Title Search?
A title search has notable benefits for property buyers. Prior title searches also protect sellers from appearing fraudulent when they list their property.
The advantages of a title search make it a mandatory step. You may need to pay an attorney or a title company to obtain a legally binding search. Costs vary by jurisdiction and the title company you use.
Aside from these costs, a buyer may also need title insurance. The one-time premium protects you and the lender in case future problems arise regarding the title. Let’s look at some of these advantages in depth:
It protects the buyer from wasting valuable time
Consider an example: Jones puts in an offer for a house he loves. However, when the search comes back, he realizes that Rodri, the seller, co-owns the home with his two siblings, who are unwilling to sell. Jones withdrew his offer and found another property. He saved the time he would have wasted on negotiations for a house that is unclear for sale.
It saves buyers from acquiring a property with attached debts and unpaid taxes
Suppose you unwittingly buy a house with liens. The lienholders may block its sale until you pay them.
It provides information to establish whether the property fits the buyer's needs
Some properties have easements that may affect how private they are or if you may develop them further. This clause allows a neighbor, the public, or others to access or use part of your property. For example, a holiday house may offer little privacy if the public has a legal right to access the beach through the property.
How Long Does a Property Title Search Take?
A title search can take minutes, hours, or weeks. The duration highly depends on how old the property is and how often it has changed hands. For instance, a 1930s house title search will likely take longer than a house built in 2018. An old home may also have been sold or inherited severally.
Reviewing each previous owner's records may take longer than buyers anticipated.
Performing a title search may not be as exciting as browsing listings and viewing properties available for sale. But the search can reveal nasty surprises you would rather know now than later. A title search saves you time, money, and legal battles.
Helpful Resources:
Most property buyers are familiar with the certificate of title that proves ownership. However, this document does not contain the history behind a property. Buyers must conduct a complete title search to discover previous owners and possible encumbrances affecting legal ownership.
A title search examines public property records to ensure the title is free and clear. For example, a house may not be free to sell if the seller has pending HOA dues, unpaid property taxes, or a lien from a judgment. If someone buys such a property, they may inadvertently inherit these obligations and liabilities.
Title abstractors and attorneys help consumers extract all available information on a property they wish to buy. Some buyers who want to save money may prefer to do it themselves. Whether they hire an attorney or a title company, prospective buyers should understand the steps involved so they can oversee the title search.
What is a Property Title Search?
Unlike a certificate of title or a bill of sale, a property title is not a tangible document. Instead, it is a concept that proves ownership. You must review the records dating back to the initial property owner.
A proper title search reveals whether the seller is the rightful owner, whether other entities claim stakes in the property, and whether there are liens that must be satisfied before the sale.
Consumers can find the information by reviewing the following records:
- County land records
- Deeds
- Property plats (plans of divisions and boundaries)
- Tax liens
- Construction liens
- Divorce court cases
- Bankruptcy court records
- Probate court cases
- Judgments
Investors will generally follow the steps outlined in the following section.
How to Perform a Property Title Search
Buying property involves searching through listings, attending open houses and viewings, and settling on the best fit. However, that's just the beginning: there is a more critical search to complete.
You must ensure that the person selling the real estate is the rightful owner. Additionally, buyers must uncover and either agree to shoulder any attached financial obligations or walk away.
The more information buyers have, the better the decisions they make. To uncover those details, individuals must review records, sometimes dating back decades, depending on how old a property is.
As mentioned, you can perform the search yourself. However, remember that lenders and title insurers require that a professional do the job.
Steps to performing a property title search
Below are the main steps for conducting a title search.
- Conduct an online search of your county's records on the state website. Here, you may find deeds and other information available online.
- Go through the tax records to confirm that there are no outstanding taxes or liens.
- Confirm that there is a clear title chain. For example, if the original owner, Mr. A, transferred the title to Mr. B, and Mr. D sold it to Mr. F, there is a missing link between Mr. B and Mr. D. An explanation for the break in the chain is necessary for the sale to proceed.
- Review the abstract title. This summary tells a brief history that may highlight any issues with the title.
- Note down your findings. Keeping a record ensures you remember to bring them up when discussing with the seller. You also consider them in your final decision.
- Resolve any issues with the seller. Some sellers may be willing to pay pending obligations to set them free to sell. Others may include them in the closing costs. If someone is unwilling to resolve the issues and they are too expensive to inherit, it may be wise to withdraw your offer.
There are several advantages of title search. A homeowner may do so to check for the validity of their title certificate while buyers perform a title search to protect their investment.
What are 3 Advantages of a Property Title Search?
A title search has notable benefits for property buyers. Prior title searches also protect sellers from appearing fraudulent when they list their property.
The advantages of a title search make it a mandatory step. You may need to pay an attorney or a title company to obtain a legally binding search. Costs vary by jurisdiction and the title company you use.
Aside from these costs, a buyer may also need title insurance. The one-time premium protects you and the lender in case future problems arise regarding the title. Let’s look at some of these advantages in depth:
It protects the buyer from wasting valuable time
Consider an example: Jones puts in an offer for a house he loves. However, when the search comes back, he realizes that Rodri, the seller, co-owns the home with his two siblings, who are unwilling to sell. Jones withdrew his offer and found another property. He saved the time he would have wasted on negotiations for a house that is unclear for sale.
It saves buyers from acquiring a property with attached debts and unpaid taxes
Suppose you unwittingly buy a house with liens. The lienholders may block its sale until you pay them.
It provides information to establish whether the property fits the buyer's needs
Some properties have easements that may affect how private they are or if you may develop them further. This clause allows a neighbor, the public, or others to access or use part of your property. For example, a holiday house may offer little privacy if the public has a legal right to access the beach through the property.
How Long Does a Property Title Search Take?
A title search can take minutes, hours, or weeks. The duration highly depends on how old the property is and how often it has changed hands. For instance, a 1930s house title search will likely take longer than a house built in 2018. An old home may also have been sold or inherited severally.
Reviewing each previous owner's records may take longer than buyers anticipated.
Performing a title search may not be as exciting as browsing listings and viewing properties available for sale. But the search can reveal nasty surprises you would rather know now than later. A title search saves you time, money, and legal battles.
Helpful Resources:
Most Popular Posts
If your minor child travels alone in the United States, you will most likely be required to complete documentation through the airline's...
Understanding the difference between these two documents will help you make the right decision and include the correct information.