What Is a Title Search?

When you're buying or selling real estate, there are countless moving parts to manage. One critical step that ensures the deal goes smoothly is the title search. But what exactly is a title search, and why is it so important in real estate transactions?

In this article, we'll break down what a title search is, why it's essential, and what you should expect during the process.

What Is a Title Search?

A title search is the process of reviewing public records to confirm a property's legal ownership and uncover any claims, liens, disputes, or restrictions that might affect the transfer of the property. It ensures that the seller has the legal right to sell the property and that there are no hidden issues that could jeopardize your ownership after closing.

Title searches are typically performed by a title company, a real estate attorney, or an escrow agent during the home buying or selling process.

Why Is a Title Search Important?

1. Verify Ownership: It confirms the seller is the legal owner and has the authority to sell the property.
2. Identify Liens or Judgments: It reveals any outstanding debts, such as unpaid mortgages, taxes, or contractor liens, that are attached to the property.
3. Uncover Restrictions: It may find easements, covenants, or restrictions that could affect your use of the property.
4. Prevent Future Legal Issues: A clear title helps avoid costly legal battles down the road.

Without a thorough title search, buyers risk inheriting unknown debts or legal claims against the property.

What Does a Title Search Look For?

During a title search, the examiner looks for:

• Deeds that show the chain of ownership
• Outstanding mortgages
• Property tax records
• Judgments against current or past owners
• Easements or rights of way
• Restrictive covenants
• Unresolved claims (e.g., missing heirs, probate issues)

How Long Does a Title Search Take?

In general, a title search can take anywhere from a few hours to a few days, depending on the property's history and the complexity of the records. Older homes or properties with multiple past owners may require a more in-depth investigation.

What Happens After the Title Search?

Once the title search is complete:

• If no issues are found, the closing process can move forward smoothly.
• If issues are uncovered, they must be resolved before closing. This might involve paying off liens, correcting filing errors, or resolving ownership disputes.

Typically, a title insurance policy is issued after the search, providing protection in case any title defects emerge later.

Who Pays for the Title Search?

The cost of a title search is usually part of the closing costs. Depending on the local real estate customs and negotiations between buyer and seller, either party might pay for it. On average, a title search costs between $75 and $250, but this can vary based on location and complexity.

Final Thoughts

A title search might seem like a behind-the-scenes part of buying or selling real estate, but it plays a crucial role in protecting your investment. Whether you're a first-time homebuyer or a seasoned investor, ensuring a clear title can save you from major headaches and financial losses.

If you're preparing to buy or sell property, working with a trusted title company or real estate attorney will ensure a smooth and secure transaction. Don't overlook the title search—it's your best defense against future problems.

Need help with your real estate title search? Contact Security American Title today for fast, reliable title search services that give you peace of mind during your transaction.