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How a Property Title Search Checks For A Clean Title

By
Real Estate Agent with RE/MAX Executive Realty 91362

If you think you’ve found your ideal home, there are still many stages to go through before you can move in. While you’ll be excited about the home, there are potential stresses before closing day.

Stages like title searches can seem confusing, but they are important when you are committing to the large financial expense of buying a home.

It is easy to assume that the seller of a home is the actual owner, but that could be a mistake. If you later find that there is a lien or some other claim on the property, there could be serious consequences. Title searches check the records to ensure the owner and the seller are the same people, and that there aren't any claims against the home.

Before purchasing, you'll want to know there is a clear title on the house. Without a clean title, you could get stuck with a financial nightmare.

We’ll look at how title title searches work in more detail, showing how they protect you when buying a home.

Is a Title Search Really Needed?

The title search company checks public records to make sure the seller actually has the right to offer the home for sale. This search should find any claims or liens that could cause problems for you when buying the home.

If you don’t have this search, you won’t know for sure if the home has a clear title before you buy. While the seller might not know about any claims on the home, if there are any, these debts could become your responsibility later.

Liens can be a result of many things. Outstanding property taxes, unpaid home improvement bills, and even HOA fees could be the cause of liens of the home.

This is also an issue that concerns lenders. They normally require a title search and title insurance that protects them against problems missed by the title search company.

How Searches Check the Seller is the Owner of the Home

Generally, the title search will be completed by either a title company or a real estate attorney. They will try to uncover all the publicly available documents that relate to the property being purchased. This information should confirm who the owner is and reveal any legal claims against the property.

The job of completing the search can fall to someone known as an abstractor. They will create an abstract of the title using all the legal and other relevant documents relating to the home.

There will be a history of the home transactions, including listing the current and previous owners. Also included in the abstract could be details of lawsuits where the property was involved, previous surveys, and details of any easements that run across the property.

The home must have a clear title so that you don’t risk having a claim made on the title of the home you’ve just bought. You can also buy title insurance, or get a warranty of title, to protect your ownership. Insurance to protect you might only be a one-off expense and might be worth the cost even if the lender doesn’t mandate it.

The time it takes to complete a title search is around two weeks.

How Much Does a Title Search Cost?

The price of this type of search can vary depending on the state the home is located. But typical costs can range from around $75 to $200. When the search has been completed you will receive a report listing the documents related to the property and any issues discovered during the search.

It is possible to cut out this cost by performing a search yourself. Though if a lender is involved in your purchase, this won’t be an option. Even without a lender, it still might be better to leave this work to people who know what they are doing. If you make a mistake and miss something in your search, the saving you made will be a lot less than the costs you could face.

How Long Will You Have to Wait for Title Search Results?

This search will involve bringing together all the relevant documents for the property. Older homes are more likely to have been sold more and have a greater chance of claims and liens on the title.

For this reason, a title search on an older home is likely to take more time. There will be more documents to find and look over, and the report will be longer. Even though you might be in more of a rush to confirm the title is clear, you need the title company to do a thorough search.

Closing Thoughts

There are many different stages to the buying process that might seem confusing or unnecessary.

But a title search is something that will protect your purchase and give you confidence that there aren’t any hidden claims on the home you’re about to buy. There are also other things to check when buying a house that are not related to a title search.

It is vital to look for potential problems so you don't get stuck owning a property you will regret.

Posted by

With three decades of experience, Bill Gassett is an authority in the real estate sector. Bill writes informative articles for numerous prestigious real estate sites to help buyers, sellers, and fellow real estate agents. His work has been featured on RIS Media, the National Association of Realtors, Inman News, Placester, Realty Biz News, Credit Sesame, and his own authority resource, Maximum Real Estate Exposure. Reach out to Bill Gassett for his real estate, mortgage, and financial expertise.

Comments (2)

Bill Salvatore - East Valley
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em: golfArizona@cox.net

Thank you for sharing the information. Buyers and sellers in your area will benefit from your expertise. Wishing you continued success.  Have a wonderful day and sell a house.  bill

 

May 16, 2022 11:47 AM
Bill Gassett
RE/MAX Executive Realty - Hopkinton, MA
Metrowest Massachusetts Real Estate

Thanks Bill Salvatore - East Valley understanding a title search is an important thing for both buyers and sellers to understand.

May 17, 2022 07:09 AM