Title Search IMportance

A title search is an examination of public records to confirm a property's legal ownership, and find out what claims or liens are on the property. The search primarily includes a review of land records going back many years. This is a key part of the mortgage loan process and it is usually performed by a title company or an attorney, often on behalf of the prospective lender. The objective is to validate that the seller of a property is the legal owner, and that there are no liens, overdue assessments, or other issues that could affect the property's ownership.

How do title searches protect buyers?
Title searches protect buyers by ensuring that the property they are purchasing is free and clear of any encumbrances, such as liens or legal judgments. They can reveal if the previous owner has any unpaid taxes or if there are easements on the property that could limit the use of the land. By identifying these issues before the property is purchased, a title search can prevent future legal trouble and financial losses for the prospective buyer.

What is included in a title search?
A title search includes the examination of public records such as deeds, court records, property and name indexes, and other documents. The goal is to establish the chain of title, which is the sequence of historical transfers of title to a property. The search will look for any potential issues in that chain that could affect the ownership. It also identifies any liens against the property, like mortgages, encumbrances, tax liens, and easements, as well as any restrictions, covenants, conditions, and obligations that might be associated with the property.

Why is title insurance so important?
​Title insurance is a form of indemnity insurance that protects the holder from financial loss sustained from defects in a title to a property. Despite all the work that goes into a title search, there might be issues that weren't found in the public records or were overlooked in the search process. This could include things like fraud, forgery, undisclosed heirs, and errors in the public records. If any such issues come up after the purchase of the property, title insurance covers the insured party for any claims and legal fees that arise out of such problems. There are two types of title insurance: one for the mortgage lender and one for the property owner. While the lender's title insurance is usually required for a mortgage, the owner's policy is typically optional, but highly recommended for the protection it provides.