When buying or refinancing real estate, the title search is one of the most important—but often overlooked—steps. This critical process ensures that the person selling the property has the right to do so and that no hidden legal issues could affect your ownership. Without a proper title search, a new homeowner could be in for unwelcome surprises, such as liens, disputes, or ownership claims. In this article, we’ll explain the title search process step by step to help you understand how it works and why it matters.
What Is a Title Search?
A title search is an examination of public records related to a property to verify its legal ownership and determine whether there are any claims, liens, judgments, or encumbrances on it. It is typically performed by a title company, real estate attorney, or escrow agent before a real estate transaction closes.
The goal is to ensure that the title is “clear” and that no legal issues prevent the buyer from taking full ownership.
Step 1: Initiating the Title Search
The title search process usually begins once the purchase agreement is signed and the transaction moves into escrow. The real estate agent, lender, or buyer typically requests a title company to start the search.
The title company then opens a file for the transaction and assigns a title officer to conduct the research. This professional starts the detailed investigation using public land records, which may include:
- County Clerk records
- Recorder of Deeds
- Tax assessor’s office
- Court records
- Local and state databases
Step 2: Reviewing the Chain of Title
The next step is reviewing the chain of title—the historical record of ownership transfers for the property. This chain may go back several decades to ensure that ownership has passed legally and without dispute.
The title officer looks for any breaks, such as:
- Missing deeds
- Forged documents
- Incomplete or incorrect transfers
- Ownership disputes
- Undisclosed heirs or divorces
A clean chain of title shows that all prior transfers were valid, and there are no lingering questions about who legally owns the property.
Step 3: Checking for Liens or Claims
Once the ownership history is verified, the title officer checks for liens, encumbrances, and judgments that could affect the buyer’s rights. These may include:
- Mortgage liens – unpaid loans against the property
- Tax liens – unpaid property taxes
- Mechanic’s liens – unpaid contractor or repair bills
- Judgments – legal rulings involving money owed by a previous owner
- HOA liens – unpaid homeowners’ association fees
If any of these are found, they must be resolved before the property can be transferred. This might involve paying off debts or getting releases from the lienholders.
Step 4: Verifying Legal Description and Property Boundaries
A key part of the title search is confirming the legal description of the property. This is not the street address but a written description identifying the lot’s exact boundaries using metes and bounds or lot and block systems.
The title company cross-references this legal description with the most recent surveys, plans, or maps to ensure that the sold property matches what’s recorded in public documents.
These issues must be resolved before closing if discrepancies are found, such as encroachments or boundary disputes with neighbors.
Step 5: Checking for Easements and Restrictions
Title searches also uncover easements, covenants, and restrictions attached to the property. Easements are legal rights allowing others to use part of your property—such as utility companies accessing lines or a neighbor using a shared driveway.
Restrictions and covenants, often set by developers or HOAs, can affect how you use the property. Examples include:
- No commercial activity
- Architectural style requirements
- Limits on exterior paint colors or fencing
While these don’t usually stop a sale, buyers should be aware of them before completing the purchase.
Step 6: Creating the Title Report
Once all information has been gathered, the title company creates a preliminary title report (a title commitment). This report summarizes:
- The current owner of record
- Chain of title
- Any existing liens or judgments
- Easements or restrictions
- Legal description
- Requirements to clear title (if needed)
The buyer, seller, real estate agents, and lender all review this report. If issues are found, the title company outlines what must be resolved to ensure a clear title.
Step 7: Clearing Title Issues
If there are any defects, the title company works to clear the title. This may involve:
- Paying off old liens
- Correcting clerical errors in public records
- Recording missing documents
- Filing quitclaim deeds to settle ownership disputes
- Getting affidavits from heirs or previous owners
The goal is to ensure the buyer receives a clear, marketable title when the sale closes.
Step 8: Issuing Title Insurance
Once the title is clear, the title company issues title insurance policies—one for the lender (mandatory for most loans) and one for the buyer (an owner’s policy).
Title insurance protects against losses arising from:
- Undiscovered title defects
- Fraud or forgery
- Unrecorded claims
- Clerical mistakes in the public record
Unlike other types of insurance, title insurance is a one-time fee paid at closing, and it covers you for as long as you own the property.
Step 9: Final Review at Closing
Just before or during the closing appointment, the title company performs a final title check—called a “bring-down” search—to ensure that no new issues have appeared since the initial report.
If no new liens or claims have been filed, the title company gives the green light for the closing to proceed. At this point:
- The deed is signed and recorded
- Funds are disbursed
- The new title and insurance policies are finalized
Why the Title Search Matters
The title search process provides buyers, sellers, and lenders peace of mind. Without it, buyers could unknowingly inherit legal issues threatening their ownership.
Some of the most important benefits include:
- Confirming the legal seller has the right to sell
- Avoiding unpaid debts tied to the property
- Preventing costly legal disputes later
- Securing financing by satisfying lender requirements
- Protecting your investment with title insurance
Conclusion
The title search process may happen quietly behind the scenes, but it’s vital in every real estate transaction. It protects the buyer and the lender by ensuring the property is free from legal complications and can be transferred without issue.
By understanding each step—from verifying ownership and liens to issuing title insurance—you’ll be better equipped to navigate the real estate closing process confidently and clearly. Whether buying your first home or refinancing an existing one, a thorough title search is your best defense against future property headaches.
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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