Buying a home is one of the biggest financial decisions you’ll ever make. While it’s easy to focus on the visible aspects of a property—like the layout, condition, or location—there’s something just as important happening behind the scenes: the title search.
A title search helps confirm that the seller actually owns the property and has the legal right to sell it. It also checks for any legal issues that could become a problem for you after closing. Whether you’re buying your first home or your fifth, understanding what a title search is—and why it matters—can save you from costly surprises down the road.
What Is a Title Search?
A title search is a detailed review of public records related to a property’s ownership history. It’s typically conducted by a title company or real estate attorney during the closing process. The purpose is to ensure that the seller has clear and marketable title to the home—meaning there are no outstanding claims, liens, or legal issues that could affect your ownership.
This search goes back many years and may involve combing through county property records, court documents, tax filings, and other legal documents. It’s a behind-the-scenes process, but it plays a crucial role in protecting your investment and ensuring the transaction goes smoothly.
What Does a Title Search Look For?
A title search dives deep into the property’s legal history to uncover any potential issues that could interfere with your right to own and use the home. Some of the most common things a title search looks for include:
- Legal Ownership: Verifies that the seller is the rightful owner and has the authority to sell the property.
- Outstanding Mortgages or Liens: Ensures there are no unpaid debts (like a second mortgage, contractor liens, or tax liens) that could transfer to the new owner.
- Unpaid Property Taxes: Confirms all property taxes are current—delinquent taxes could lead to future legal problems.
- Easements and Encroachments: Identifies if any part of the property is legally shared or accessible by others (e.g., utility companies or neighboring properties).
- Restrictive Covenants: Checks for HOA rules or deed restrictions that limit how the property can be used.
- Pending Legal Actions: Searches for lawsuits or disputes involving the property, such as divorce settlements or probate issues.
These findings are compiled into a title report, which is shared with you and your real estate agent prior to closing. If any issues are discovered, they’ll need to be addressed before the sale can move forward.
Why a Title Search Matters to Homebuyers
As a homebuyer, you want to make sure that the property you’re purchasing truly belongs to the seller—and that you won’t inherit any hidden legal or financial burdens. That’s where the title search comes in.
Here’s why it matters:
- Confirms Legal Ownership: You don’t want to discover after closing that someone else has a legal claim to your new home.
- Avoids Unwanted Surprises: Title searches can uncover issues that would otherwise become your responsibility—like back taxes or unpaid debts.
- Protects Your Investment: You’re making a major financial commitment, and a clear title ensures you actually own what you’re paying for.
- Required by Lenders: If you’re financing your home, your mortgage lender will require a title search to protect their investment in the property, too.
Bottom line: a title search isn’t just a box to check off—it’s a key step in making sure your home purchase is safe, legal, and secure.
What Happens If a Problem Is Found?
It’s not uncommon for a title search to uncover issues—especially with older homes or properties that have changed hands multiple times. The good news? Most problems can be resolved before closing.
Here are a few common issues and how they’re typically handled:
- Unpaid Liens: If the property has a lien (like unpaid contractor bills or back taxes), the seller must pay it off before the sale can close.
- Ownership Disputes: If there’s confusion over who legally owns the property—such as in the case of inheritance or divorce—a legal resolution must be reached.
- Clerical Errors: Typos or misfiled documents in public records can delay the process but are usually fixable.
- Easement Disputes: If another party has legal access to part of the land, the buyer will need to decide whether that easement is acceptable.
The title company plays a key role in clearing up these issues. In some cases, your purchase agreement may allow you to back out of the sale if a title problem can’t be resolved, especially if it threatens your full ownership rights.
What Is Title Insurance, and Do I Need It?
Even after a thorough title search, it’s possible for hidden issues to surface later—like a previously unknown heir or a forged document in the property’s history. That’s where title insurance comes in.
There are two types of title insurance:
- Lender’s Title Insurance: Required by most lenders to protect their financial interest in the home. This is usually paid for by the buyer.
- Owner’s Title Insurance: Optional but highly recommended. It protects you, the homeowner, from financial loss due to title defects or legal challenges after closing.
Why it’s worth it:
- It’s a one-time cost paid at closing.
- It covers you for as long as you own the home.
- It provides legal and financial protection against claims that weren’t found during the title search.
In short, title insurance offers peace of mind. While the chances of a serious title issue are slim, the consequences could be significant. For a relatively small upfront cost, it’s one of the best ways to protect your investment.
Final Thoughts
A title search may not be the most exciting part of buying a home, but it’s one of the most important. It confirms that the seller has the legal right to transfer ownership, uncovers any potential problems with the property, and gives you the confidence that your new home is truly yours—free of hidden claims or legal issues.
At the Kenmore Team, we guide homebuyers through every step of the process, including working closely with trusted title companies to ensure your transaction is smooth and secure. Whether you’re buying your first home or upgrading to your forever place, we’re here to make sure your investment is protected.
Have questions about the title search process or what to expect during closing? Reach out to the Kenmore Team today—we’re ready to help you move forward with confidence.