A title search is designed to identify any potential issues with the property’s title. In this article, we will discuss what a title search is, when it is necessary, why it is important, and what kinds of title searches are available.
Table of Contents
What is a Title Search?
A title search is an investigation into the history of the property’s title. This search is conducted to identify any potential liens, judgments, or other encumbrances on the property that could affect the buyer’s ownership rights. The search typically covers a period of several decades and is performed by a title company or attorney.
When Do You Need a Title Search?
A title search is typically performed during the home buying process, prior to the closing of the sale. It is necessary to ensure that the seller has the legal right to sell the property and that the buyer will receive clear and marketable title to the property. Title searches may also be required when refinancing a mortgage or taking out a home equity loan.
Why Title Searches are Important
Title searches are important because they help to protect both the buyer and the lender from potential legal issues that may arise in the future. If there are any outstanding liens or judgments on the property, the buyer may not have clear ownership rights, and the lender may not be able to foreclose on the property in the event of default. A title search can identify these issues early on and allow the parties involved to address them before the sale is finalized.
A title search must be conducted and examined by qualified abstractors (title searchers) and title examiners or real estate attorneys in order to obtain a title insurance policy.
Types of Title Searches
There are several different kinds of title searches that may be performed depending on the circumstances of the transaction. Some of the most common types of title searches include:
Current owner search: This search examines the title for any issues that may have arisen since the property was last purchased.
Two-owner search: This search examines the title for the previous two owners of the property.
Full search: This search examines the title for the entire period of time that the property has been in existence.
Full 60-year search: This search examines the title back 60 years and is the most common search conducted on residential purchases.
Title Searches - Crucial Part of the Home Buying Process
In conclusion, a title search is a crucial part of the home buying process that helps to protect both the buyer and the lender from potential legal issues. There are several different types of title searches available, each designed to meet the specific needs of the transaction.
Disclaimer
The Wicked Title Forum is a collaborative resource. If you spot something outdated or inaccurate, leave a comment—we’ll get it fixed.
All sample forms, procedures, and instructional content are for general educational purposes only. They are not legal, financial, or underwriting advice, and should not be relied upon without first consulting with your attorney, underwriter, or compliance officer. Use of this material is at your own risk.
Some links or content may be affiliate or sponsor links. That means I might earn a commission—at no extra cost to you. I only recommend things I use, trust, or have personally reviewed.