Key Takeaways
- Title searches verify the seller legally owns the property and can transfer it to you.
- Common issues include unpaid liens, easements, boundary disputes, and deed errors.
- Most title problems can be resolved before closing with help from the seller and title company.
What is a title search and what problems does it find?
You want to know what a title search uncovers and what problems can come up during this part of the closing process.
A title search traces the ownership history of a property to confirm the seller has the legal right to transfer ownership to you. The title company or attorney examines public records, deeds, court documents, and tax records to create a complete ownership chain. This process typically takes a few days to several weeks, depending on how far back the records go and what the searcher finds.
Title searches commonly uncover liens from unpaid taxes, contractor work, or previous mortgages that weren't properly released. The search can also reveal easements that give others rights to use part of the property, boundary disputes with neighbors, or errors in previous deeds like misspelled names or incorrect legal descriptions. Sometimes the search finds claims from heirs who weren't included in a previous sale.
Most issues that come up can be resolved before closing. The seller typically handles clearing liens or providing documentation to fix deed errors. Your lender and title company can walk you through what each finding means for your purchase and what steps need to happen to clear the title.
