A title search is a crucial part of the home-buying process. It ensures that the seller has the legal right to transfer ownership and that no outstanding issues, like liens or legal claims, could affect your rights as a future homeowner.
While most title searches go smoothly, sometimes problems arise. Here’s what to expect and how to handle it.
What Is a Title Search?
A title company conducts a title search to review public records and verify that a property’s title is clean, free from liens, disputes, or ownership issues. This step protects you from unexpected legal or financial responsibilities once you take ownership of the home.
Common Title Search Problems
Title searches can reveal hidden issues that may delay or complicate a home purchase—here are some of the most common problems to watch for.
- Public Record Errors
Simple human mistakes—like misspelled names or incorrect document filings—can confuse and delay the transaction. These errors must be corrected to ensure a clear title. - Undisclosed Liens
If a previous owner fell behind on taxes, contractor bills, or other debts, creditors may have placed a lien on the home. Until those debts are paid, the property cannot be legally transferred without risk to the buyer. - Gaps in the Chain of Title
The title must show a complete, unbroken chain of ownership. Any missing or improperly transferred deeds can suggest a prior illegal sale, which could jeopardize your legal claim to the home. - Legal Description Errors
Each property has a legal description in public records. If it’s inaccurate or unclear, it can create disputes over boundaries or usage rights. - Undiscovered Wills
If a deceased previous owner left no known will and one later surfaces, the rightful heirs might have a legal claim to the home, even after it’s been sold. - Missing Heirs
Similar to undiscovered wills, heirs that were previously unknown or couldn’t be located might later contest the sale of the property. - Easements
Easements give others legal rights to use parts of your property—for example, a city utility company accessing pipes. If these aren’t disclosed, they could interfere with your use or plans for the home.
What to Do If a Title Issue Arises
If your title search uncovers a problem, don’t panic—most issues can be resolved. Here are a few common solutions:
- Ask the seller to resolve the issue before closing.
- Work with a title attorney to settle the claim.
- Negotiate for more favorable terms or walk away from the deal if necessary.
Your real estate agent, title company, and loan officer can help you navigate any title-related obstacles to keep your closing on track.
The Role of Title Insurance
When you close on your mortgage, you’ll be required to purchase title insurance. This protects both you and your lender against financial loss if any title issues arise later. Even those missed during the original search.
If you’re planning to buy a home and want expert guidance throughout the process, contact us today. We’re here to help every step of the way.
