Title Search

A title search is a process that is performed primarily to determine the answer to three questions:

• Does the seller have a saleable interest in the property?
• What kind of restrictions or allowances pertain to the use of the land (real covenants, easements, or other servitudes)?
• Do any liens exist on the property which need to be paid off at closing (mortgages, back taxes, mechanic's liens, or other assessments)?

Anyone may do a title search. Documents concerning conveyances of land are a matter of public record. These documents are maintained in hard copy paper format or sometimes scanned into image files, The information within the documents is typically not available as data format as the records are descriptions of legal events which contain terms, conditions, and language in excess of data. It is often the case that people choose to contact a title company or attorney to conduct an exhaustive title search. The process of performing a title search involves accessing the official land records for the subject property. Each record is a document evidencing an event which occurred in the history of the property. A deed records an event of property transfer, a mortgage documents the collateral interest of a home loan, and a lien documents a claim against the property in favor of another. In each recorded event, the document indicates parties of grantor and grantee. The grantor is the party transferring away property rights, and the grantee is receiving property right. In the case of a deed the grantor would typically be the property seller, and the grantee the buyer. A mortgage grantor is the borrower of the loan, since they are giving away property rights to the lender, or grantee.

The records are kept in a centralized government office usually at the county courthouse with exceptions in a few states such as Connecticut and Rhode Island which maintain the records at the city or town level. Each document is recorded in a particular book and page location by date and are not grouped together by property address. The process of a title search begins with searching for and retrieving each physical document from the various books which contain them. The collected documents are then reviewed and analyzed to see how each affects the property, and which documents have been released by subsequent recordings. Contingent conditions within documents such as life estates and remainder interests may exist within the document language. This process is often performed by a trained professional called a title abstractor. Some title abstractors have certifications documenting their experience level and training and successfully having passed an exam.

The document produced by a title abstractor is called a title abstract, or abstract of title. This is not a document which exists in public records, but it is derived from documents contained within the courthouse. The title abstract is provided to the title company, attorney, or end-user by the abstractor.

For example, a title report may also show any easements, or recorded legal rights to the property or portions of the property. A previous owner may have legally given a neighbor the right to share the driveway, or the city may have a right to strips of the property for putting power lines, communication lines, water pipes, or sewer pipes. A few on-line services offer title searches for relatively little cost, and their accuracy is not inferior to what a title company or attorney will offer; however on-line businesses rely mostly on electronically available information, and for that reason could at times be limited.

In the United States, the buyer of a property will usually purchase title insurance, which protects the buyer from any title problems that may arise after sale (such as liens that were missed during the title search). The title insurance company issues a report and issues an insurance policy in support of its findings. However, title searches are most often carried out before contracting is completed between parties and sometimes during the escrow phase of a closing.

A title search is also performed when an owner of a certain real property wishes to mortgage his property and the bank requires from owner to insure their transaction.

Generally, there are two main types of title searching, a full coverage search and limited coverage search; other types include non-insured reports and foreclosure guarantee search.