A property title review examines public records and other relevant documents to determine who owns a property and whether anything could interfere with transferring clear ownership to a buyer. It is a routine part of many home purchases and can uncover liens, ownership disputes, deed errors, easements and other issues before closing.
The goal is not simply to confirm the seller’s name. A title review looks for claims or defects that could affect your rights to the property after you buy it.
Key Takeaways
- A property title review checks ownership records and other documents for problems that could affect the transfer of a home.
- Common issues include unpaid liens, unreleased mortgages, deed errors, ownership disputes and certain easements.
- A title review, title insurance and a title company are related but serve different purposes.
- Many title problems can be corrected before closing, but serious defects can delay or prevent the sale.
- Buyers should resolve material title questions before closing rather than assuming they can be fixed later.
What Is a Property Title Review?
A property title review is the process of examining records connected to a piece of real estate to determine whether the seller can transfer the ownership interest expected by the buyer.
You may also hear this described as a title search or title examination.
The process can involve reviewing recorded deeds, mortgages, liens, judgments, easements and other documents associated with the property or its owners.
For a buyer, the central question is simple: Is there anything in the property’s history that could interfere with receiving the ownership rights you expect at closing?
What Does a Title Search Look For?
A title search commonly examines the property’s chain of ownership and recorded claims against it.
Depending on the property and jurisdiction, the review may look for:
- Current ownership
- Previous deeds
- Outstanding mortgages
- Mortgage releases
- Tax liens
- Judgment liens
- Mechanic’s liens
- Easements
- Restrictions or covenants
- Errors in prior deeds
- Probate or estate issues
- Other recorded interests that could affect ownership
Many of those documents are public records, which is why property research often begins with county land records. Our guide to public property records explains where buyers can find deeds, liens, parcel information and other records themselves.
A professional title review goes further than a basic address search, however. Identifying every relevant document can require tracing ownership history, matching names correctly and determining whether older claims were properly released.
Why Is a Property Title Review Important?
Real estate can carry legal claims that are not obvious when you walk through the house.
A property may look perfectly normal while an old mortgage remains unreleased in the records or a judgment lien attaches to the owner’s interest.
Without resolving those issues, a buyer could face questions about whether someone else has a claim against the property.
Title review is therefore part of making sure the seller is transferring what the purchase agreement says the buyer is supposed to receive.
What Is a Title Defect?
A title defect, sometimes called a cloud on title, is a problem that creates uncertainty or interferes with clean ownership of the property.
Some defects are relatively straightforward to fix. Others can require legal work or substantial investigation.
Unreleased Mortgages
A previous owner may have paid off a mortgage without the release being properly recorded.
Even though the debt itself may no longer exist, the public record can still make it appear that the lender has an interest in the property until the issue is corrected.
Property Liens
Tax liens, judgment liens, mechanic’s liens and other claims can potentially interfere with a sale.
Many must be paid or otherwise resolved before the buyer receives acceptable title.
If you’re purchasing a property with a recorded claim against it, see how property liens can affect a home sale.
Errors in a Deed
A deed can contain incorrect names, incomplete legal descriptions, missing signatures or other defects.
Some problems can be corrected with another recorded document. More complicated discrepancies may require additional title or legal work.
Ownership Disputes
A title review may reveal questions about whether everyone who has an ownership interest has properly participated in the transaction.
This can become particularly important with estates, divorces, trusts or properties that have passed through several family members.
Easements and Other Recorded Rights
An easement does not necessarily make title defective. Many properties have routine utility or access easements.
But buyers still need to know when someone else has a recorded right to use part of the property because that can affect how the land can be used.
How Far Back Does a Title Search Go?
There is no single number of years that applies to every title search.
The necessary review depends on local practices, the property’s history and the standards used by the professionals handling the transaction.
The objective is to establish an acceptable chain of ownership and identify unresolved interests that could affect the current sale.
A particularly old or complicated property can require more research than a home with a straightforward recent ownership history.
What Is the Difference Between a Title Review and a Title Company?
A title review is a process. A title company is a business that may perform or coordinate that process and provide other services connected to the transaction.
Depending on the state and transaction, a title company may:
- Search property records
- Examine title
- Identify defects
- Coordinate the resolution of certain title issues
- Handle escrow or settlement functions
- Prepare or coordinate closing documents
- Issue title insurance policies
The exact role varies because real estate closing practices differ by state.
If you have the ability to choose the provider, our guide to choosing a title company covers the main factors to compare.
What Is the Difference Between a Title Review and Title Insurance?
A title review looks for problems before the transaction closes.
Title insurance addresses certain covered title problems that may be discovered after the policy takes effect.
| Title review | Title insurance | |
|---|---|---|
| Main purpose | Identify ownership problems and recorded claims before closing | Provide protection against covered title risks under the policy |
| When it matters | During due diligence and closing preparation | After the policy is issued |
| Does it correct defects? | Can identify issues that need to be corrected before closing | May provide coverage for certain covered losses or claims |
| Same thing? | No | No |
The two work together. A title search reduces the chance of obvious problems carrying into the transaction, while insurance addresses certain risks that remain or are not discovered beforehand.
What Is the Difference Between Title and a Deed?
A deed is a document used to transfer an interest in real estate.
Title is the broader concept of legal ownership and the rights associated with that ownership.
In other words, the deed is evidence of a transfer. Title describes the ownership interest itself.
That distinction is one reason reviewing a deed alone is not always enough. A deed may identify the current owner while other recorded documents reveal claims affecting that owner’s title.
Our guide to understanding a property deed explains what buyers can learn from the document itself.
What Happens if a Title Search Finds a Problem?
Finding a title problem does not automatically end the transaction.
The next step depends on what was discovered.
The Seller Pays or Releases a Lien
Some claims can be resolved by paying the amount owed and recording documentation showing that the lien has been released.
A Missing Document Is Recorded
An old mortgage may have been paid but never properly released in the public records. The appropriate party may be able to provide the documentation needed to clear it.
A Deed Is Corrected
A clerical or drafting error in a previous deed may be addressed with a corrective document, depending on the issue and local law.
The Closing Is Delayed
If a defect requires more time to resolve, the parties may need to move the closing date.
Whether that is possible and what happens next depends on the purchase agreement.
The Transaction Does Not Close
Some title problems cannot be resolved quickly enough or to the buyer’s satisfaction.
In that case, the purchase may not proceed, depending on the contract and the nature of the issue.
Can a House Be Sold With a Lien on It?
Potentially, but the lien usually needs to be addressed as part of the transaction if it affects title.
For example, the seller may use sale proceeds to satisfy a mortgage or another lien at closing.
The important distinction is between a claim that can be routinely paid and released and one that creates a genuine dispute over ownership or the amount owed.
A buyer should not assume that a lien will disappear simply because ownership changes.
Can a Quitclaim Deed Fix a Title Problem?
Sometimes a quitclaim deed is used to correct or clarify a particular ownership issue, but it is not a universal solution.
A quitclaim deed transfers whatever interest the person signing it may have without providing the warranties commonly associated with some other deed types.
It is often used in situations involving family transfers, divorce, trusts or corrections rather than a typical arms-length home purchase.
If one appears in the property’s history, our guide to quitclaim deeds explains what the document does and what it does not guarantee.
Can Buyers Search a Property Title Themselves?
You can search many of the same public records yourself.
County recorder, assessor and court databases may allow you to find deeds, liens and other documents connected to the property.
That can be useful for preliminary research and for understanding what you are buying.
But a DIY search is not the same as a professional title examination.
Potential problems include:
- Searching the wrong name variation
- Missing older documents
- Failing to connect a judgment to the correct owner
- Misinterpreting an easement
- Assuming a lien was released when it was not
- Missing a problem in the chain of ownership
Use your own research to ask better questions rather than treating it as proof that title is clear.
When Does the Title Review Happen?
Title work generally takes place after a purchase agreement is signed and before closing.
It often overlaps with mortgage underwriting, inspection, appraisal and other due diligence.
Starting early gives the professionals involved more time to resolve problems before the scheduled closing date.
If something significant appears, you may need additional documents from the seller, lenders, courts or previous owners.
What Should Buyers Look at in a Title Report?
If you receive a preliminary title report, commitment or similar document, focus on anything that affects ownership or use of the property.
That can include:
- The name of the current owner
- The legal description
- Existing mortgages or liens
- Easements
- Restrictions
- Requirements that must be satisfied before closing
- Exceptions from title insurance coverage
Ask questions about anything you do not understand.
The title documents can be technical, but the basic objective is straightforward: know what ownership interest you are receiving and what claims or restrictions will remain after closing.
Bottom Line
A property title review is designed to find ownership problems before they become the buyer’s problem.
It examines deeds, liens and other records to determine whether the seller can transfer acceptable title and whether any recorded claims or defects need to be resolved first.
Many issues can be corrected before closing. What matters is identifying them early enough to investigate and resolve them before ownership changes hands.
FAQ
What is a property title review?
A property title review examines ownership records and other documents for issues that could affect a real estate transfer, such as liens, deed errors, ownership disputes or unreleased mortgages.
Is a title review the same as a title search?
The terms are often used similarly. A title search focuses on locating the relevant records, while title review or examination can also refer to evaluating what those records mean for ownership.
What does a title search reveal?
It may reveal current and previous ownership, mortgages, liens, easements, deed problems and other recorded interests affecting the property.
What happens if a title problem is found?
The issue may need to be paid, released, corrected or otherwise resolved before closing. More complicated defects can delay or prevent the transaction.
Is title insurance the same as a title search?
No. The title search identifies problems before closing, while title insurance provides protection against certain covered title risks under the terms of the policy.
Can I do my own title search?
You can search public records yourself, but that does not necessarily provide the same level of review as professional title work. A buyer can miss documents or misinterpret how a recorded claim affects ownership.
When is the title search done when buying a house?
Title work usually takes place after the purchase agreement is signed and before closing, often at the same time as inspection, appraisal and mortgage underwriting.
