Title Search on Property: How to Perform a Title Search

A title search is a search through property records to check for encumbrances that may affect, inhibit, or alter the exchange of a property title. A property title affords the legal right to use a piece of real property freely and belongs to the person who owns it. When searching for a property title, you check to ensure that the current owner and seller holds all of the rights that come with property ownership. Specifically, you perform this search to confirm that the seller can legally transfer property ownership.

Prior claims, liens, judgments, or hindrances on the property—like unpaid property taxes or a break in the chain of title—could result in a “cloud on title” or “title defect,” which can invalidate the property sale or pass the seller’s debts onto the buyer.

A title search is usually one of the first steps a buyer takes during the home-buying process. Before they approve your loan, most mortgage lenders will require you to obtain a title insurance policy—which protects against any potential encumbrances on a title. Learn more about title insurance.

A real estate attorney or title company working on behalf of the prospective buyer or mortgage lender will usually perform a title search. Much of the due diligence in the title search process falls on the title abstractor, who may work independently or for the title company.

The abstractor’s job is to search through property and land records, verify ownership, prepare leases, and resolve disputes. These professionals contact real estate agents, lenders, or other legal parties to help gather all of the information needed for a proper title search. While performing your own title search can save money, note that it is a detailed and complicated process that benefits from expert assistance.

Here are some of the benefits of doing a title search:

1. 1. Clarifies ownership: A title search requires a deep dive through public records to ensure that the property seller (or current owner of the property) has the authority to sell the property to the potential homebuyer. Perhaps the seller’s name is not on the deed, or the person who originally sold the house to the seller was not on the deed: This situation creates a break in the chain of title. A seller may not be aware that they don’t have legal ownership of the property, which would void their right to sell. However, a title search can help establish the chain of title and determine who the legal property owner is.
2. 2. Exposes existing claims: A title search reveals whether the property in question has existing liens against it, outstanding property taxes, or any other current claims on the property. Those legal obligations pass onto the buyer (whether intentional or not), so doing a property title search can protect the potential buyer from inheriting financial debt.
3. 3. Reveals restrictions: Land subject to easements—which give third parties the right to use a piece of property—or other restrictions will often show up in a title search. Knowing about these variables can prepare the prospective buyer for additional legal issues or potential disputes over the land in question.

Consider having a professional perform your title search because they are likely to catch details that the average home buyer may miss. However, you can save a few hundred dollars by doing it yourself. Here’s how:

1. 1. Start your search online. Counties will often keep copies of their public records online, which you can access through your state government’s website. Visit your state government’s site and select your county, then search for the property title you’re interested in.
2. 2. Find tax records. Tax records offer a more detailed look at the property information while confirming that all property taxes are up to date. Tax histories also provide accurate assessments of the property’s value over time, giving you a better picture of the current fair market value of the property. Your county’s tax assessor’s office will contain records of tax liens that you can check to ensure there are no encumbrances to your property purchase.
3. 3. Check for a clear chain of title. Obtain all of the deeds for the property for the last fifty to seventy years. First, ensure that the name on the most recent deed matches the current seller. Overall, you’re checking for a clear chain of title, which verifies sequential ownership of a property and ensures there are no other legal claims or privileges against the property that can lessen its value. Many counties keep an up-to-date archive of property deeds at the county recorder's office. You can find this office in a county courthouse or a standalone recorder's office. In some cities, property deeds reside within a city archive, often at the official city hall. City and county clerks can steer you toward public information resources to aid your title search.
4. 4. Look up the abstract of title. An abstract of title is a condensed summary of the property history, containing information about tax liens, foreclosures, inheritances, unpaid taxes, easements, or encroachments, usually starting with the grant deed. Abstractors consult the county clerk’s office or other appropriate land title offices to prepare this document, which chronologically structures the sequence of deeds and further establishes the chain of title. Obtain the most recent abstract of title before entering negotiations for the purchase.
5. 5. Document your findings. Consolidate your findings in a written document that includes a detailed legal description of the property, the tax history, the chain of title, and any other pertinent information.
6. 6. Consult a real estate attorney. Compiling your own title search is a complex process best performed with professional help. Once you’ve documented the necessary information, consult a real estate attorney about how to move forward with your data. They can advise you on dealing with any encumbrances or answer questions about complicated legal documents.
7. 7. Go through the title company. A title company works with real estate agents to verify property ownership. As such, their company files may include current property owner information along with titles from previous owners. The records of an individual title company are likely to be more comprehensive than a self-assembled report.

All investments, including real estate investments, come with inherent risks which may involve the depreciation of assets, financial losses, or legal ramifications. The information presented in this article is for educational, informational, and referential purposes only. Consult a licensed real estate or financial professional before making any legal or financial commitments.

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