Title Search
Also known as: Title Examination, Title Abstract
A review of public records to verify that the property has a clear title — meaning the seller has the legal right to sell it and there are no outstanding liens, disputes, or other claims against the property.
Detailed Explanation
A title search examines the property's ownership history through public records: deeds, mortgages, liens, judgments, tax records, and other documents that could affect ownership.
In new construction, the title search is especially important because of the risk of mechanic's liens. If the builder or general contractor did not pay subcontractors, suppliers, or other parties who worked on or provided materials for the home, those parties may file a lien against the property.
The title search is conducted by a title company or attorney as part of the closing process. The results are summarized in a title commitment (or preliminary title report) that lists any issues or exceptions found.
In Your Contract
Title search costs appear in your closing costs. The title commitment is provided before closing for your review.
Key Points
- 1Verifies clear ownership and identifies liens, claims, or disputes.
- 2Especially important in new construction due to mechanic's lien risk.
- 3Conducted by a title company as part of the closing process.
- 4Review the title commitment before closing.
- 5Purchase title insurance for protection against undiscovered issues.
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