What is a Title Search and Why You Need One

A title search, typically conducted by a title company or attorney, is a crucial step in the home buying process. It involves examining public records such as court documents and deeds to confirm the current owner's legal right to sell the property. Additionally, a title search uncovers any potential claims or liens on the property that may need to be addressed before the sale.

Understanding How a Title Search Works

Whether you are financing your home purchase or paying cash, a title search is essential for protecting yourself from unforeseen financial burdens. The results of the search are compiled into an "abstract of title," which includes information on previous owners, surveys, easements, deed transfers, mortgages, and more.

Types of Title Searches

There are two main types of title searches, full coverage, and limited search. Full coverage searches are comprehensive and look back at decades of ownership history, while limited searches focus on a specific owner and deed.

Importance of a Title Search

Even if you believe you are purchasing a property free of issues, a title search is likely required by your lender if you are financing the purchase. Considering the relatively low cost of a title search, it is worth avoiding potential legal complications in the future.

Title Search vs. Title Insurance

In addition to a title search, purchasing title insurance is vital for protecting against outstanding claims or liens that may not have been uncovered. Lender's title insurance is required for most mortgages, while owner's title insurance is optional but provides future protection.

How To Conduct a Title Search

While your lender or attorney will typically order a title search for you, you have the option to perform your own search. This process involves requesting records from various offices and reviewing them in detail. Alternatively, you can hire a title search firm to handle the search for you.

Overall, a title search is a crucial step in the home buying process that helps protect buyers from financial loss and ensures the legal ownership of a property. Most lenders require a title search and insurance, making it an essential part of purchasing a home.