A title search is an examination of public records to verify a property's legal ownership history and identify any liens, easements, or other encumbrances affecting the title. A thorough title search is standard due diligence for any property purchase, since undiscovered title issues can create significant legal and financial complications after closing.
What a title search can reveal
| Issue type | Potential impact |
|---|---|
| Liens | Unpaid debts secured against the property |
| Easements | Third-party rights to use portions of the property |
| Ownership disputes | Unclear or contested chain of title |
| Deed restrictions | Recorded limitations on property use |
What to watch for before committing
Qualified title company engagement
Engage a reputable title company or attorney to conduct a thorough title search rather than relying on informal record review.
Complete chain of title verification
Confirm the search covers a sufficiently long historical period to identify any gaps or issues in the ownership chain.
Easement impact on intended use
Carefully review any identified easements to understand how they might affect your intended use or future development plans.
Outstanding lien resolution
Ensure any identified liens are properly resolved before closing, typically through seller payoff at or before transaction completion.
Deed restriction compatibility
Verify any recorded deed restrictions are compatible with your intended use of the property.
Title insurance coordination
Coordinate the title search with obtaining title insurance, since the search typically forms the basis for insurance underwriting.
When you need to know this
- Purchasing commercial property — verifying clean, marketable title before finalizing the transaction
- Identifying easements affecting development — understanding third-party rights that could limit your intended use
- Resolving outstanding liens before closing — ensuring the property transfers free of unresolved debt claims
- Obtaining title insurance — establishing the foundation for insurance underwriting
Frequently asked questions
Ready to conduct thorough title due diligence?
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