Buying or selling a home is one of the biggest financial decisions most people will make. In Michigan, as in many other states, the title search process plays a critical role in ensuring that property ownership transfers smoothly and securely. Whether you are purchasing your first home, refinancing a mortgage, or investing in real estate, understanding what happens during a title search can help you avoid costly mistakes and legal complications.
This article will walk you through what a title search is, why it’s important, how the process works in Michigan, and what buyers, sellers, and lenders should expect.
What Is a Title Search?
A title search is an examination of public records related to a property. The goal is to confirm that the seller has a legal right to transfer ownership and that no one else has a claim, lien, or legal interest in the property. The search is conducted by a title company or a real estate attorney and typically occurs after an offer has been accepted but before closing.
In Michigan, title searches are governed by state law and industry standards, ensuring that all parties in the transaction—buyers, sellers, and lenders—are protected.
Why Is a Title Search Important in Michigan?
Without a thorough title search, buyers may unknowingly inherit legal or financial problems associated with the property. Here’s why the process matters:
- Protects Buyers – A title search ensures the buyer is receiving clear ownership rights, free from disputes.
- Protects Lenders – Mortgage lenders require a clean title to safeguard their investment.
- Prevents Legal Issues – Identifying liens, easements, or judgments ahead of time prevents post-closing surprises.
- Supports Title Insurance – Title insurance companies rely on the search to assess risk and issue coverage.
In Michigan, skipping or rushing this process could leave a buyer responsible for thousands of dollars in back taxes, legal fees, or repairs due to undisclosed property restrictions.
The Step-by-Step Title Search Process in Michigan
A title search in Michigan follows a structured process, though details may vary depending on the county and property type. Here are the major steps:
1. Review of Public Records
The title company or attorney begins by examining public records at the county Register of Deeds office. This includes:
- Deeds – To establish a clear chain of ownership (called the “chain of title”).
- Mortgages – To check for active loans secured by the property.
- Liens and Judgments – Such as unpaid contractor bills, tax debts, or child support liens.
- Probate Records – If the property was inherited, to ensure a legal transfer.
- Divorce Records – To confirm that ex-spouses have no lingering ownership rights.
2. Chain of Title Examination
The chain of title is the history of ownership transfers. The examiner verifies that each transfer was legally executed and recorded. Any missing documents, forgeries, or gaps in ownership could cloud the title.
3. Check for Easements and Restrictions
Some properties in Michigan come with easements, which are legal rights allowing others to use part of the property—for example, utility companies needing access to power lines. Additionally, covenants or restrictions may dictate how the property can be used, especially in subdivisions or HOA communities.
4. Search for Liens and Encumbrances
The examiner checks whether there are any debts or obligations attached to the property, such as:
- Tax Liens – Unpaid property taxes owed to the state or county.
- Mechanic’s Liens – Claims by contractors or builders for unpaid work.
- Judgment Liens – Court-ordered debts that must be resolved before transfer.
5. Survey and Legal Description Review
The property’s legal description is compared with maps and surveys to confirm boundary lines. This helps identify disputes with neighbors or encroachments, such as a fence or driveway built across property lines.
6. Report Findings
Once complete, the title company prepares a title commitment or preliminary report, which outlines:
- Who currently owns the property?
- Any liens, easements, or encumbrances.
- Conditions that must be met before the property can close.
This report is shared with the buyer, seller, lender, and real estate agents.
Common Issues Found in Michigan Title Searches
While many title searches come back clean, it’s not uncommon to uncover problems that must be resolved before closing. Some common issues in Michigan include:
- Unpaid Property Taxes – Michigan counties can place liens for unpaid taxes, which must be cleared before a property transfer can occur.
- Mechanic’s Liens – Contractors may file liens for unpaid home improvements.
- Outstanding Mortgages – Old mortgages may still be listed even after being paid off, requiring a release document.
- Unknown Heirs – If the property was passed down without proper probate, heirs may surface later with claims.
- Clerical Errors – Misspellings or recording mistakes in deeds can create confusion in the chain of title.
- Easement Disputes – Utility or access easements may limit how the property can be used.
How Title Issues Are Resolved
If issues arise during the search, the title company works with the seller to resolve them. For example:
- Paying off outstanding liens.
- Filing legal documents to release old mortgages.
- Correcting clerical errors through affidavits.
- Negotiating easement agreements.
In some cases, closing may be delayed until the issues are fully resolved. Title insurance can protect buyers from certain risks that may not be identified during the search process.
The Role of Title Insurance in Michigan
Once the title search is complete, buyers are typically required to purchase title insurance. There are two main types:
- Owner’s Title Insurance – Protects the buyer from future claims against ownership.
- Lender’s Title Insurance – Required by most mortgage lenders to protect their financial interest.
Title insurance is a one-time cost paid at closing. In Michigan, it provides peace of mind that even if an overlooked issue arises later, the insurance will cover legal defense or financial loss.
How Long Does a Title Search Take in Michigan?
Most title searches in Michigan take 3 to 7 business days, though the timeline can vary depending on:
- The property’s history (older properties often require more extensive searches).
- The county’s record-keeping system.
- The complexity of liens or ownership transfers.
Final Thoughts
A title search in Michigan is an essential safeguard in any real estate transaction. By carefully reviewing public records, identifying liens and encumbrances, and confirming clear ownership, the process protects both buyers and lenders from unforeseen risks.
Whether you are buying a home in Detroit, investing in rental property in Grand Rapids, or refinancing a cottage in Northern Michigan, a title search ensures your investment is legally sound and free from hidden issues.
When paired with title insurance, this process gives buyers the confidence to move forward, knowing their property rights are secure.
Learn more about our comprehensive title insurance services here.
Thank you for reading! If you enjoyed this article and want to explore more content on similar topics, check out our other blogs at Sonic Loans, Sonic Realty, and Sonic Title. We have a wealth of information designed to help you navigate the world of real estate and finance. Happy reading!
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