Wouldn’t it be great to know more about a property before you buy it? A real estate title search is simply a process of researching the ownership of your property. It is used to determine if that title has passed legally and accurately throughout the years, up to the current owner. Knowing how to do a title search can help you find any potential problems with the property’s title before you buy. With all of the other issues that can come up, especially when building your home, having one less concern is a good thing.
You can use the public records, most of them available online, to do a preliminary search of the property you are hoping to buy. Doing this can also help when you are making your offer to the seller. For example, if you know that your seller might be strapped because they have unpaid taxes, federal tax liens, etc. combined with a huge mortgage on another piece of property, the offer you make might be lower than you would have otherwise made.
Whether you finance the purchase of your real property or not, it is very important to be aware of any possible liens that may encumber the property you wish to buy. These liens may include mortgages, unpaid taxes, homeowner association dues, etc.
There are very specific ways in which ownership passes from one individual to another. It is not uncommon, especially when dealing with properties that have been sold numerous times, for errors to creep into what is known as the “chain of title.”
In some states, an attorney will be the person charged with searching the records and issuing a title search report. Title companies do the bulk of this kind of research in most other states. They have well trained, experienced people who search the public records to determine what liens, if any, are attached to a piece of property. When the examiner completes their report, a title policy, much like your car insurance policy, will be issued. This policy however, unlike your auto policy, does not expire. It is valid until the property passes ownership.
So now you’ve decided to do a little research before making your offer. The first thing you will need is the legal description of your property. You can get this from your county appraiser’s office, or whichever government entity is responsible for assessing your taxes.
Next, check with the tax collector to see if all taxes have been paid on the property. The collector is also responsible, in some jurisdictions, for collecting impact fees, street lighting resolutions, road paving, etc.
Lastly, check with your county clerk, either online, or in person at the courthouse. If records are available online, simply search the name of the person who owns the property, according to the tax assessor, in the grantor/grantee indexes. Use the legal description that you obtained from the tax assessor’s office to eliminate documents that don’t apply to the property you are searching.
If you are at the courthouse, a clerk who works in the public records department can help you with locating the books, or microfilm that have the information you need.
In summary, while it is possible to do your own title search, there are many legal issues involved in a real estate transaction, so seek a professional when putting your hard earned money into a property. For example, even though a county clerk might record a deed, that does not mean that it conveys title properly. It is not their job to ensure the legality of a document. The law is very specific when it comes to completing forms transferring title. Individuals who have not purchased title insurance, have often regretted their decision when a long lost heir comes knocking at their door, laying claim to their legitimate interest.
