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Title & legal

Title Search

Also called Title examination, Title check

In short

A title search is a review of public records to confirm who legally owns a property and to find any liens, judgments, easements or other claims that could affect ownership.

Who does it
Title company or attorney
What it checks
Ownership, liens, judgments, easements
Typical timing
After an offer, before closing
Critical for
Auction and distressed purchases

What a title search covers

A title examiner traces the chain of ownership through county records and looks for anything recorded against the property or its owners, including mortgages, tax liens, judgment and mechanic's liens, lis pendens notices, easements and restrictions. How far back the search goes depends on the company, the state and the type of transaction.

Title search and title insurance

In a typical purchase, the title company performs the search and issues a commitment for title insurance, listing the issues that must be resolved before closing. A search cannot catch everything; forged documents, recording errors or unknown heirs can still surface later, which is what an owner's title insurance policy covers.

Title research before an auction

Auction buyers usually cannot get title insurance before the sale, so many order a title report or do their own research in county records. The key questions are which loan is foreclosing, which liens are senior to it and will survive, and whether there are tax or government liens. Mistakes here can cost more than the property is worth.

Example

What a title search found

A buyer is under contract on a pre-foreclosure home for $210,000. The title search shows the first mortgage, a $25,000 home equity line, a $4,200 HOA lien and a $1,800 mechanic's lien. The seller owes about $205,000 in total, so the sale cannot pay everyone. The deal is restructured as a short sale, and the lienholders agree to accept reduced payoffs.

Title Search vs. Title Insurance

Title Search

A title search is a review of public records to confirm who legally owns a property and to find any liens, judgments, easements or other claims that could affect ownership.

Title Insurance

Title insurance protects a buyer or lender against losses from ownership problems that existed before the purchase, such as undisclosed liens, forged documents or recording errors. It is paid once at closing.

The differenceA title search finds recorded problems with a property's title. Title insurance protects you financially against covered title problems the search missed or that come up later.

Frequently Asked Questions

Related terms

LienTitle & legalA lien is a legal claim against a property that secures a debt. It must usually be paid off before the property can be sold with clear title, and the creditor can force a sale in some cases.Tax LienTitle & legalA tax lien is a government's legal claim against a property for unpaid taxes. Property tax liens usually take priority over mortgages and can lead to a tax lien certificate sale or tax deed sale.Lis PendensForeclosure processA lis pendens is a recorded notice that a lawsuit has been filed involving title to or an interest in a property, such as a judicial foreclosure. It warns buyers that the outcome could affect ownership.Closing CostsBuying & closingClosing costs are the fees and prepaid expenses paid to complete a real estate purchase, beyond the price and down payment. Buyers typically pay about 2% to 5% of the loan or purchase price.Quitclaim DeedTitle & legalA quitclaim deed transfers whatever ownership interest the seller has in a property, if any, without any promise that the title is valid or free of liens.Foreclosure AuctionForeclosure processA foreclosure auction is the public sale of a property after a borrower defaults, where the highest bidder buys it, usually with cash and as-is. If no one outbids the lender, it becomes bank-owned.Deed of TrustTitle & legalA deed of trust is a security instrument used instead of a mortgage in many states. The borrower gives a neutral trustee legal title as security for the loan until it is paid off.EscrowBuying & closingEscrow is an arrangement where a neutral third party holds money or documents until the conditions of a deal are met. The term also refers to the account a lender uses to pay a borrower's property taxes and insurance.

Learn more in the knowledge base

Title, Liens and Due Diligence on Distressed PropertiesGuide · 9 min readDistressed properties often come with debts and paperwork problems attached. A title search, a clear understanding of which liens survive a sale and the right title insurance protect you from inheriting someone else's obligations. This guide explains what to check and when.Researching a Foreclosure Property Before the AuctionGuide · 6 min readAt a foreclosure auction you usually buy as-is, unseen and without contingencies, so research done before the sale is your only protection. This guide covers how to confirm the sale details, check title and liens, estimate value and repairs from the outside and turn it all into a maximum bid.Closing Day: What to Expect When You Buy a HomeGuide · 7 min readClosing is where the loan funds, the money changes hands and the home becomes yours. Knowing what to review beforehand, what to bring and what you are signing makes the day shorter and helps you catch problems while they can still be fixed.
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Disclaimer: The information on this page is for general educational purposes only and is not legal, financial, tax or investment advice. Laws, lending rules and market conditions vary by state and change over time, and any figures shown are estimates. Before you buy, sell, finance or bid on a property, consult a qualified attorney, financial advisor, lender or licensed real estate professional about your situation.