In real estate terms, a “title” refers to a guarantee that a person actually owns the residential or commercial property described in a deed. “Title” can also refer to the person’s rights to the land as owner, such as use rights.
Disputes over ownership can lead to what is called a “title search,” which is when a person searches local records to find out who has title to the land in question. Title search is often a good idea if someone is buying a property that has changed hands through multiple owners over time.
record a title
Upon the sale or purchase of a property, the laws of your state generally require the buyer or seller to register the event. This is done by registering at the city or county recorder’s office. The registrar’s office is the local department that handles the registration of title records. Recorded titles can often take priority over unrecorded titles.
When the title is registered, notes will also be made of any existing “liens” on the title. Liens, often called “clouds over title,” are any type of prior limitations that could affect the rights of the future owner. Common clouds in title deeds can be mortgages, easements, liens, and any restrictions on the use of natural resources on the land.
Conducting a title search
Typically, a person will conduct a title search prior to the sale or purchase of a property or in the event of an ownership dispute. A title search involves examining county records for ownership and use history of the property. The purpose of a title search is usually to discover two things:
- To verify who is the real and legal owner of the property
- To determine whether or not title to the land is “clouded” with liens
A title search can be initiated by a buyer or anyone interested in the property in question. They will generally employ a commercial title company or someone knowledgeable in such matters, such as an attorney or escrow agent. The title company will also ask if the title is insurable or not.
Items and Subjects That Title Search Reviews
Title searches can vary in scope because each county recorder’s office is different from county to county. Also, title companies and attorneys have their own different procedures for searching titles. In general, a title search will typically conduct a review of:
- The “chain of title”, which describes the passing of ownership from one owner to another
- Public records and court records related to the property
- A legal description of the property, such as the delimitation of the limits of the property and the geographical characteristics of the land. The description is usually recorded at the registrar’s office.
- Property tax records.
- Mortgages, liens and other liens
- Easements (land use): these may or may not be registered at the registrar’s office
Perhaps the most important aspect of a title search is the “chain of title,” which lists all previous owners as well as transfers of ownership. If a person obtained property without registering title, they are said to be “outside the chain of title.” Depending on the jurisdiction, titles that are outside the chain of title may or may not be considered valid.
What Title Searches Don’t Reveal
Title searches do not cover everything. If the transfer of ownership has not been recorded, then a title search will obviously not reveal the event. Other issues that a title search might not uncover are:
- Evidence of illegal acts such as fraud or forgery.
- Errors Attributed to Good Faith Efforts by a Clerk or County of Record
- Improperly processed documents, such as a will
- Confusion caused by people with the same or similar legal names
title insurance
If available, a person can purchase title insurance through the title company. Title insurance ensures that the title company will thoroughly search the public records to ensure that no one else can claim ownership of the properties to which you have a deed. Also, the company should be able to defend its interests if there is a cloud on the title or if someone else claims ownership or usage rights.
Points to consider
Title issues are important. Much of land disputes often involve title, so knowing what a proper title search entails is essential. If you are going to do a title search, you may want to partner with an attorney who can help guide you through the process. Here are some points to remember when searching for titles:
- Title searches generally have two main purposes: to determine the rightful owner of the property and to uncover any liens on the property.
- Familiarize yourself with the registrar’s office and also with court records.
- If you recently acquired title, be sure to register the event with the registrar’s office. In many jurisdictions, a registered title will be valid over an unregistered title
- Title insurance is available to defend your interests
- Consider working with an attorney or title company
