What Is a Title Search?
When going through with the purchase or sale of a home, many people assume that the home can be sold without issue. The truth, however, is that there can be liens or claims on the property that must be handled before the transaction can be closed. If these issues aren’t resolved, the new owner would need to contend with them. Lenders won’t finalize a loan until a proper title search has been completed and examined by a professional Title Searcher.
A property title search is a report submitted to your chosen title company from a professional property title researcher, abstractor and examiner (also called a title searcher). The title company will then issue a title commitment to your lender stating that they are committed to insuring your property is free from all title defects excepting various things that are in the report.
The title searcher has a very specific job to search through all public records on a property and person to determine who the rightful legal owner is as well as what the actual legal description is of the property. This search will also reveal other claims that might have been made about the property over the years. During the title search, contracts, deeds, and other papers will be examined to determine if any defects are present on the deed or land. The report will also include any municipal findings that may be filed. If the property has encountered a zoning violation, or has a building permit open these violations and permits will be present in the title search findings if it wasn’t previously handled.
If you’re buying a home, you want to be certain that you receive a clear title that won’t open you up to future legal issues. Connecticut is only 3 of all 50 states that are town based and the land records are handled very differently from other states. It is essential that you choose an experienced professional who resides in Connecticut and researches your title physically at the town hall. Many companies are very reckless and will promise great results while ordering and completing the title search online. Some companies will tell you this is the easiest way to determine if the title for the home you’re interested in is clean. This is false information and very reckless to do, we never suggest doing a title search in Connecticut using online record resources. Many of the towns in Connecticut do not house the water and sewer liens online, so if companies are doing your title search online you may be opening yourself up for a legal headache for your future. If you’re getting ready to sell your property, you also might want to run a title search before listing your property to make sure that all potential issues have been resolved. Have a conversation with your Licensed Realtor about running a pre-liminary title search on your property and always remember just like your Realtor, Attorney, Appraiser, Inspector, and Lender, you have the right to choose your Title Researcher.
Why You Need a Title Search
Finding out exactly who owns a property that you want to buy is the most important aspect of obtaining a title search. Keep in mind, however, that the existing owner might not know about an old claim that’s present in the title. You should also know that any liens that are found on a title search need to be resolved before the sale is finalized if you don’t want to encounter long-term issues with your ownership claim. Even a partial ownership claim could substantially devalue your investment.
While liens can be minor financial issues, you would be tasked with paying them since most liens and other debts on the title follow the property as opposed to the owner. A federal lien is the only lien that does not follow property, however people but these too could cause undue hardship on a new property owner if not resolved. The most common encumbrances that are present on a title include homeowners association (HOA) fees, home improvement bills, and unpaid property taxes, judicial liens, child support liens, restitution liens, and various mechanical liens and various Universal Commercial Code Liens . If you don’t request a title search, you might become responsible for one or more of thess expenses.
There are many issues that can be identified during a title search, the primary of which include:
- An easement that alters the use of the property
- A break that’s found in the chain of title, which means that someone who didn’t actually own the property conveyed it
- Creditor, tax, or mechanical liens
- A bankruptcy that the current owner has had, which leads to unclear ownership
- Town zoning ordinances that prevent you from being able to use the house like you want to
- A scenario where someone aside from the owner lives in the property and would claim ownership in the event that the owner died
- Existence of multiple mortgages on the property, all of which need to be paid before the sale goes through
- Building code violations
- Ongoing divorce proceedings that could result in a spouse contesting the property transfer
- A current or pending foreclosure
- Judgments that have been made against the owner and might result in liens
- Claims by neighbors that they own a portion of the land
- Local permits that might make the title less clear or prevent a clear title from being made
You can inquire with a real estate attorney if you’re unsure about what happens if encumbrances remain after you purchase the property. You should also find out what needs to be done to resolve issues on a title if you’re getting ready to list your home on the market.
As mentioned previously, lenders require a title search before they provide borrowers with loans. If an ownership claim or discrepancy is found during the title search, you would be tasked with resolving this issue before the closing process could continue. At this point, the buyer may decide to back out of the sale if they don’t want to wait, which is why it’s highly recommended that you perform a title search before the borrower’s lender requests one.
Who Performs a Title Search?
Often your Attorney will order the title search through the title company they are using to issue the title policy on your property. But you should always know who is doing your title searcher, what their credentials are and if they have Errors & Omissions insurance. You should also be aware if they live in the state, you are purchasing the home. Often title searches are ordered from the title company from an oversees company who does the title search online making it very reckless for errors to happen. You should always get a copy of your title search from your attorney and know who has performed it. Every state in the U.S. uses different terminology, form names and records documents different and usually at the county level. Because Connecticut is so different and has 169 municipalities all housing their own land records, it is imperative only a professional title searcher in Connecticut completes your search. If you’ve hired an attorney to help you get through the real estate transaction, they would likely be able to assist you with understanding the title search and any problems that are discovered and they can get you in touch with the title searcher for the most complicated answers to your question.
How Long does a Title Search Take
The amount of time it takes to perform a title search largely depends on how large the property is, if it is commercial or residential, and if there are complex documents involved. If there are a vast amount of liens on the property the title search will likely take longer. In the event that a town clerks office is closed, the title search wouldn’t be complete until these documents are provided, which means that numerous delays are possible.
Once all of the documents are available, it can take anywhere from several hours to several weeks to perform a thorough examination of the documents to look for outstanding claims. The average duration for a title search is one to two weeks.
There are also some differences depending on the age of the home. A home that is being built on a development should take longer than an existing home as all building and zoning regulations and municipal records must be examined. An existing home almost always has less documents to search through, which means that the title search process should be quicker. On the other hand, older homes may have extensive records, all of which would need to be reviewed before the process could continue.
While waiting for the results of the title search can be frustrating, a longer wait makes it much more likely that any issues pertaining to ownership claims or liens will be caught before the sale is finalized.
A title search should always occur before a property is bought or sold. As a buyer, you don’t want to purchase a home if you would be tasked with paying for outstanding liens or debts that weren’t caught because a thorough title search wasn’t performed. If you’re selling your home, you should be confident that a clean title will be produced when the borrower’s lender orders a title search. If an issue arises, you can take steps to resolve it early on in the home-selling process.
Fusion Title Search
The team at Fusion Title Search takes pride in its ability to work closely and effectively with the area’s best closing attorneys, title companies and lenders bringing unsurpassed service and support throughout the property title processes.