Key Takeaways
- Title searches typically cover 40-60 years of public records to trace ownership, liens, and encumbrances.
- The chain of title must be unbroken—gaps require quiet title actions, corrective deeds, or affidavits.
- Four categories of title defects: lien, ownership, encumbrance, and survey—each requires different resolution.
- Title defects discovered during the search must be resolved or excepted before the title company will insure.
The title search is the investigative process that traces property ownership through public records to confirm the seller has clear, marketable title. A thorough title search protects buyers from hidden liens, undisclosed encumbrances, and competing ownership claims that could threaten their investment. This lesson covers the mechanics of the title search, the chain of title concept, and common title defects that buyers must identify and resolve before closing.
Key Stakeholders
The Title Search Process
A title search examines public records at the county recorder's office (or equivalent) to trace the history of ownership, liens, and encumbrances on a specific property. The search typically covers 40-60 years of records, though some jurisdictions require a full history back to the original government patent. The title examiner reviews: deeds (warranty, quitclaim, special warranty) to trace ownership transfers, mortgages and deeds of trust to identify existing liens, tax records to identify property tax liens, court records for judgments, bankruptcies, and divorces affecting ownership, and plat maps and surveys for boundary information. The output is a title abstract—a summary of all recorded documents affecting the property. The title company then issues a title commitment based on this abstract.
Chain of Title and Gaps
The chain of title is the sequential history of property ownership from the current owner back through every prior owner. A clean chain shows an unbroken series of properly executed and recorded conveyances. Gaps in the chain—missing deeds, improperly executed transfers, or unrecorded conveyances—create title defects that must be resolved before closing. Common chain-of-title issues include: missing heirs (a deceased owner whose estate was never properly probated), forged deeds, deeds executed by parties without legal authority, and unrecorded transfers where ownership changed hands without a recorded deed. Resolving chain-of-title defects often requires quiet title actions, corrective deeds, or affidavits from involved parties.
Common Title Defects and Red Flags
Title defects fall into several categories. Lien Defects include unpaid mortgages, tax liens, mechanic's liens (from unpaid contractors), and judgment liens from court proceedings. Ownership Defects include missing heirs, forged signatures, improperly executed deeds, and undisclosed divorces affecting joint ownership. Encumbrance Defects include unrecorded easements, restrictive covenants that limit property use, and encroachments discovered during survey. Survey Defects include boundary disputes, overlapping legal descriptions, and structures crossing property lines. Each defect type requires a different resolution strategy—some can be cleared by the seller before closing, while others require title insurance exceptions or deal restructuring.
| Defect Type | Examples | Resolution |
|---|---|---|
| Lien | Unpaid mortgage, tax lien, mechanic's lien | Payoff at closing, lien release |
| Ownership | Missing heir, forged deed, divorce | Quiet title action, corrective deed |
| Encumbrance | Easement, covenant, encroachment | Title exception, seller removal |
| Survey | Boundary dispute, overlapping descriptions | Survey correction, boundary agreement |
Key Takeaways
- ✓Title searches typically cover 40-60 years of public records to trace ownership, liens, and encumbrances.
- ✓The chain of title must be unbroken—gaps require quiet title actions, corrective deeds, or affidavits.
- ✓Four categories of title defects: lien, ownership, encumbrance, and survey—each requires different resolution.
- ✓Title defects discovered during the search must be resolved or excepted before the title company will insure.
Sources
Common Mistakes to Avoid
Not reviewing the title commitment exceptions carefully
Consequence: Standard exceptions and specific exceptions may exclude coverage for easements, encroachments, or unrecorded claims that affect property use
Correction: Review every Schedule B exception with your attorney and negotiate removal or endorsement for any exception that materially affects the investment
Assuming old mortgage releases were properly recorded
Consequence: Unreleased mortgages cloud title even when the debt was paid off, requiring time-consuming corrective action
Correction: Verify that every prior mortgage shown in the chain of title has a corresponding recorded satisfaction or release document
Test Your Knowledge
1.What is the chain of title?
2.What are the most common title defects found during a title search?
3.Why is a clear chain of title essential for closing?