What Is a Title Search?

A title search examines public records to verify that the property's title is clear — meaning the builder has the legal right to sell it and there are no liens, disputes, or other claims against the property.

The Short Answer

A title search is a review of public records related to the property to confirm that the seller (builder) has clear ownership and the legal right to transfer the property to you.

The search looks for outstanding liens, unpaid taxes, easements, boundary disputes, and any other claims that could affect your ownership.

Why It Matters for New Construction

Even though the home is newly built, the land has a history. There may be outstanding liens from the original landowner, mechanic's liens from subcontractors who were not paid, tax liens, or easements that affect the property.

If a subcontractor files a lien against the property because the builder did not pay them, that lien could become your problem after closing unless it is identified and resolved beforehand.

Title Insurance

Title insurance protects you if a problem is discovered after closing that was not caught during the title search. Your mortgage lender will require a lender's title insurance policy.

You should also purchase an owner's title insurance policy for your own protection. It is a one-time fee paid at closing.

Title insurance is especially important in new construction because of the risk of mechanic's liens from unpaid subcontractors.

What to Do

The title search is typically ordered by the title company as part of the closing process. You do not need to arrange it yourself.

Review the title commitment (also called a preliminary title report) when it is issued. It will list any exceptions or issues found.

Purchase an owner's title insurance policy in addition to the lender's policy your mortgage company requires.

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