Buying a home is one of life’s most significant milestones. But before you can officially take ownership of the property, several key steps must take place behind the scenes. One of the most important is the title search.

A title search is the process of examining a property’s ownership history. It helps identify any issues that could potentially affect the homebuyer’s legal rights to assume the property as the new owner.

How Is a Title Search Performed?

A title search involves a detailed review of public records associated with the property to uncover any claims, restrictions, or other factors that could impact the proper and legal transfer of ownership. It is typically performed by a title company or real estate attorney after the purchase contract has been signed but before closing occurs. 

What Does a Title Search Include?

During a title search, a range of public records are reviewed. These can include:

• Current and previous deeds
• Mortgage and financing records
• Property tax records
• Liens
• Court judgments
• Easements
• Restrictive covenants
• Probate records
• Bankruptcy filings
• Divorce filings
• Any other legal records that could affect property ownership

By reviewing these documents, the professional(s) conducting the title search can assess the property’s ownership history to identify any legal issues that require resolution before the transaction can move forward.

What Issues Can a Title Search Reveal?

In many cases, title searches uncover no significant barriers to ownership transfer. However, some reveal title issues, also called title defects. Common examples include:

• Liens (such as mechanic’s liens or unpaid homeowners association fees)
• Recording errors (such as misspelled names, incorrect legal descriptions, or filing mistakes)
• Unpaid property taxes
• Judgments
• Improperly probated wills
• Missing heirs

A title search may also reveal easements and restrictive covenants (such as homeowners association rules or deed restrictions). While these are not typically considered title defects, they can affect how a property is accessed, used, or developed.

Title defects discovered during a title search typically need to be resolved before the real estate transaction can close. 

What Happens If a Problem Is Found?

If a title issue is discovered, the title agent or real estate attorney will typically work with the appropriate parties to determine what steps are needed to resolve it.

Depending on the issue, resolving a title defect may involve:

• Paying off outstanding liens or other debts attached to the property
• Correcting errors in public records
• Obtaining missing legal documents or other information
• Resolving ownership disputes
• Providing additional documentation confirming ownership rights

Many title issues can be resolved before closing, but some may require additional time or documentation. More complex matters may involve legal proceedings to resolve ownership disputes or other title-related matters. 

How Long Does a Title Search Take?

The title search timeline varies depending on factors like the property’s history and the complexity of the records involved. Some are completed within a few business days, while others may take one to two weeks or longer if additional research is required.

Is a Title Search the Same as Title Insurance?

No. A title search and title insurance are both key parts of the homebuying process, but they serve different purposes. A title search is the process of reviewing public records to identify title issues before closing. Title insurance helps protect homebuyers and lenders in the event certain covered title defects were not discovered during the title search or arise after closing.

Why Is a Title Search Important?

A title search helps reduce the risk of title-related legal and financial issues after you purchase a home. It helps confirm that the seller has the legal right to sell the property and identify existing title issues that may need to be resolved. Without a title search, buyers could unknowingly inherit legal disputes, unpaid debts, or ownership claims associated with the property.

Who Pays for the Title Search?

The party paying for the title search can vary by state, local municipality, and the real estate purchase agreement. In Virginia, the buyer typically pays for the title search as part of their closing costs. However, this fee can be negotiated during the contract phase.

Can a Title Search Guarantee There Are No Title Problems?

No. A title search is designed to identify known title-related issues that appear in public records. But some title defects, such as fraud or undisclosed heirs, may not be discoverable through public records or may surface months or years later. This is one reason owner’s title insurance is often purchased. 

To learn more about the title search process, contact the team at Linear Title & Escrow.