One of the most important parts of a real estate transaction is the title search. A thorough title search helps protect home buyers, sellers, and lenders from costly legal issues by confirming that the property’s ownership is free of title defects before closing.

What Is a Title Search?

A title search is a detailed examination of the public records related to a property’s ownership history. It includes reviewing legal information that may affect the property’s title, such as deeds, mortgages, tax records, and land surveys. The fundamental goal of the title search is to confirm that the seller has the full legal right to transfer ownership of the property, and that no undisclosed claims or other title defects could threaten the buyer’s rights to the property after closing.

Title searches are typically performed by the title company or attorney conducting the closing. Their findings form the foundation for issuing title insurance and confirming the property’s title is clear before completing the real estate transaction.

Why Title Searches Matter

A title search plays a vital role in identifying potential risks that could delay or even derail a real estate sale. Without this key component, buyers may unknowingly take on legal or financial problems associated with the property. Title searches are critical for:

1. Verifying legal ownership

A title search confirms that the seller is the rightful owner of the property and has the legal authority to sell it. Title defects, such as errors in past deeds, missing signatures, or improperly recorded title transfers, cloud the title, which could prevent it from being conveyed to the buyer. Detecting these issues early allows them to be corrected before closing.

2. Uncovering liens and financial claims

Outstanding liens are one of the most common title issues. These may include:

• Unpaid property taxes
• Contractor or mechanic’s liens
• Mortgage balances from previous loans
• Judgments against the property owner

If unresolved, liens and other financial factors tied to the property could potentially become the responsibility of the new owner. A title search helps ensure these claims are discovered and addressed before the property changes hands.

3. Identifying easements and restrictions

Not all title defects are financial in nature. A title search also reveals issues like easements, restrictions, or covenants that affect how the property can be used. For example, utility easements, shared driveways, or HOA restrictions may limit the future development or use of a property. Knowing about these conditions upfront helps home buyers make informed decisions regarding their real estate purchase.

4. Preventing boundary and legal disputes

Errors in property descriptions or overlapping boundary claims can lead to legal disputes with neighboring property owners. A title search helps confirm that the legal description of the property is accurate and matches recorded plats and land surveys, reducing the risk of future conflicts.

How Title Searches Protect Buyers and Lenders

A title search can provide peace of mind for the home buyer. It helps ensure that once the transaction is complete, they can enjoy full ownership without unexpected legal issues. 

For lenders, title searches reduce risk by confirming that their mortgage will be a valid first lien on the property.

The results of a title search are also used to issue title insurance. This is a type of insurance policy that offers protection against covered title defects that may not appear in public records, or that may be discovered months or even years after closing.

Common Title Issues That Can Delay Closing

Title defects detected during the title search can delay closing and must generally be resolved before the transaction can proceed. Some of the most common title defects include:

• Clerical errors in public records
• Misspelled names or incorrect legal descriptions
• Undisclosed heirs or ownership claims
• Forgeries or fraudulent documents
• False impersonations of previous owners
• Improperly probated wills

Addressing these issues may require corrective deeds, lien releases, or legal action, depending on the type of title defect. Conducting a title search early in the process helps minimize delays and surprises as the closing day approaches.

Title Searches vs. Title Insurance

Although both are related to the property’s title, title searches and title insurance serve different purposes. A title search identifies existing issues with a property’s title, while title insurance protects against certain covered defects that may arise after closing. One does not replace the other, as both are essential components of a real estate transaction.

A title search helps protect buyers, sellers, and lenders by uncovering ownership issues, financial claims, and legal restrictions before closing on a property. Skipping or minimizing this process can expose all parties to unnecessary risk, costly disputes, and future property-related complications.

For more information on title searches, contact the team at Linear Title and Escrow today.