So, you’re interested in a property and ready to make an offer. What do you need to know about the title search process and this piece of real estate to ensure the results you want? 

In this article, we will discuss what you need to know and, most importantly, what title search mistakes to avoid.

If you haven’t had a chance yet, check out our free and subscription title search options.

The Title Search Process

I can’t emphasize enough the importance of doing a title search as a part of your real estate investment plan. If not properly done, you could lose a significant chunk of your investment and, even worse, have your ownership rights to the property jeopardized.

Let’s keep that from happening! What are some benefits of utilizing one of the many title search companies out there? 

Many real estate firms or mortgage lenders will have recommendations. However, you can also find affordable title search options on our site here.

Primarily, a title search report will reveal financial rulings against a property or its owner that could affect you once you assume ownership. That is if you choose to do a full 30-to-50-year title search, including a municipal lien search. Although there is no 100% guarantee, a title search is highly recommended. Rulings found could be things like liens, property taxes, easements, and other debts.

If you want a best-case scenario with your new property before purchasing, you’ll want the title search report to specify free and clear property ownership.

I’m sure you’re ready to get onto the new property and get started but do not rush this process, or some of the title search requirements may be overlooked.

Older homes might have more paperwork to review with their longer histories, keep this in mind if the process is taking longer than expected.

At PropertyOnion, we offer Ownership & Encumbrance Reports. Each report includes but is not limited to:

• Deed Information
• Chain of Title
• Open Mortgage Information
• Assignment of Mortgage Details
• Federal, State & County Tax Liens
• Code Enforcement Liens
• Municipal and Special Assessment Liens
• Homeowner Association (HOA) Liens
• Condominium Association Liens
• Mechanics Liens
• Utility Liens
• Case Dockets
• Property Tax Information

If you choose to use a professional service other than what we offer, you’ll pay somewhere between $100 and $400, depending on the state. Although, you can use our title search reports as a subscription member for as low as $45. Our abstractors are experts in Florida foreclosures, having over 15 years of experience.

As for a timeline, depending on the age of the property, the search could take between one to two weeks or even as little as a few hours. It depends on what kind of report you order, what state and county the property is in, who is completing the search, and how much you pay.

Older homes might have more paperwork to review with their longer histories, keep this in mind if the process is taking longer than expected. You can also call or email whomever is completing your order to request an ETA before paying them. This way, you can plan a timeline.

Title Insurance and How to Buy It

Certain types of properties bought under specific conditions may be eligible for title insurance. Never from a county foreclosure or tax deed auction. However, this is a topic worthy of its own article to fully explain when and how this is applicable.

When applicable, this is usually available as a one-time purchase (typically 0.5%-1% of the property purchase price) that will protect your claim of property ownership.

Title companies that may handle the search sometimes offer insurance policies that you can purchase alongside your existing service contract. Usually, you will find these policies with full-service title companies.

Warranty deed is another option if you are buying from an owner. If you’re dealing with an estate sale or auction, this may not be available.

There may have been more than one survey done on your property.

Title Search Requirements

What’s necessary for your title search will depend on the state where you are located. Some examples include:

• Records searched: Official Record Index, Grantor Index, Grantee Index, Mortgager Index, Lessor Index, Miscellaneous Records Direct Index, Miscellaneous Records Reverse Index 
• Period of Search 
• Offices Searched: Clerk of Court, County appraiser, County Tax Collector, Municipal offices, Utilities, and more

Title Search Checklist 

Before we analyze the mistakes that you might encounter, let’s take stock of what you need to be prepared.

• Current owner’s name (or names)
• The street address for the property
• The property’s legal description
• Acquisition date by current owner (and possibly previous owners)
• Any title insurance information that you know of
• Whatever the required length of the title search is (this is dependent on state). For instance, this could be 30+ years.

With your list in hand, let’s go deeper into what you want to avoid.

Title Search Mistakes to Avoid

There are several difficulties or errors you could encounter in your title search. So, take your time to make sure every record is addressed. 

The biggest mistakes commonly found in this process fall into four main categories: multiple records, human errors, debts, and heirs.

Let’s examine each category further, so you understand exactly what you need to be aware of.

Multiple Records

There may have been more than one survey done on your property. With several different surveyors, there may also be discrepancies between the many existing documents. This could call into question the boundaries of your prospective property and potential easements. 

Human Errors

As the famous phrase goes, “To err is human.” This applies to real estate records as well. Clerical errors do exist, and yes, they can affect your right to property ownership. Most of these errors are mis-indexing by the county on deeds or other financial record items that have been deeded to a person without including a spouse, or misspelled names.

This category also includes the rare occurrences of forgery, fraud, and illegal deeds. It’s possible for someone to impersonate an owner and claim the property as their own or falsify records. 

Check out this recent fraud case in Florida over a house that thousands of people visited for years.

You may need to check multiple sources, both digital and hard copy, to make sure nothing was miswritten or forged.

Your title search can report on all these potential red flags and any other financial concerns.

Liens/Judgments

As many people unfortunately discover, if a property is currently encumbered by a lien or judgment, it can remain with the property even after you assume ownership.

There are many types of liens or judgments that could be tied to the property, such as liens, taxes, home improvement debts, and municipal service bills.

Your title search can report on all these potential red flags and any other financial concerns. Typically, unknown liens are more common with distressed properties. Owners may have let more than the housekeeping slide before sale.

Heirs

This is a small one, but it can make all the difference. Depending on who owned the property and their will (whether they had one or not), there may be unknown or missing heirs. 

Sometimes, families contest wills, and this can also affect ownership years after purchase. 

You do not want a surprise like an heir to your new property showing up after you’ve spent months working on it. This could cost you a lot of money if not the entire property itself.

Title Search Tips

Now that we’ve run through the big four mistakes to look out for, let’s talk tips. To avoid these costly mistakes and get things right the first time, keep these title search tips in mind.

• Hire a professional. You can start a title report search with us today for as little as $45. We offer reliably hand-searched (of current owner, sometimes two owners) reports that are easy to order, view, and share right on your computer.
  • If you have any questions, give us a call at (561) 430-2616, open Monday-Friday 9AM – 5PM EST.
• Make sure all official record sources are exhausted, including official hard copy legal records in local municipal offices.
• Keep a list of crucial information: all names of current and prior owners, address, description, dates of acquisition and sale.

As you can see, the importance of a title search is foundational to a successful property purchase. Keep yourself protected by following these tips, avoiding the big four mistakes, and insure yourself against future surprises.