Trustpilot
Loading...
Loading...Loading...
A property title search is like looking up a car's history before you buy it, but the stakes are much higher and the effects last for decades instead of years. You need to be 100% sure that the person selling you a home has the legal right to do so and that no one else has a claim on the property that could come back to haunt you later when you're about to spend hundreds of thousands of dollars on it.
I've worked in the mortgage business long enough to know what happens when buyers skip this step or don't understand what they're getting. The National Association of REALTORS®' 2025 Deed & Title Fraud Survey found that 63% of real estate professionals were aware of title fraud or deed theft in their markets in the past 12 months. The Northeast had the highest rate of these crimes at 92%. These numbers aren't just numbers; they're real people who thought they were buying their dream home but ended up in legal trouble.
What worries me the most is that data from reAlpha shows that 42% of title defects found in 2025 closings were completely unknown to the seller. The seller isn't hiding anything; they really don't know about the contractor lien from 1998 or the heir who didn't sign off on the transfer 15 years ago. You can't trust what the seller says, no matter how honest they seem.
Let me explain everything you need to know about title searches in simple terms, starting with the basics and moving on to the problems you might run into in the 2026 market.
A property title search is an investigation into the legal ownership history of a property. Think of it as pulling the property's complete biography—every owner it's ever had, every debt that's been attached to it, every legal restriction that governs how it can be used. The goal is simple: confirm that the current owner has the legal right to sell and that you'll receive a 'clean' title with no surprises.
Here's what this means in practical terms. When you find a house you want to buy, a title search company (usually hired by your lender or closing attorney) digs through public records at the county recorder's office, the tax assessor's office, probate courts, and other government agencies. They're looking for anything that could affect your ownership rights—unpaid property taxes, contractor liens, divorce settlements, estate disputes, easements that give others access to your property, and any other legal claims.
The American Land Title Association reports that approximately 25% of residential real estate transactions encounter some type of title issue during the search process. Most of these issues can be resolved before closing—a past owner pays off an old lien, an heir signs a quitclaim deed, a clerical error gets corrected. But if you don't conduct the search, you won't discover these problems until it's too late, and then they become your problems.
1. Title searches are a lot cheaper than the problems they stop. The average cost of a title search for a home is between $75 and $200. However, for homes with complicated histories or those that need a lot of record research, the cost can go up to $300 or more. That's about the same as a nice dinner out or two tank fills for your car. According to reAlpha's 2025 market analysis, the average cost of a title defect after closing is between $4,000 and $10,000.
You usually don't have to write a separate check for the title search fee because it's included in your closing costs. Your lender will usually require a title search before they will approve your loan. This is because they want to protect their interest in the property. If you don't pay back the loan and they have to foreclose, they need to know they can actually take legal possession. Not doing a title search to save $150, even if you're paying cash, is one of the worst financial decisions you can make. Cash buyers are actually more at risk because no lender is checking them out for them.
2. One out of every four home sales has a title problem, but most of them can be fixed. According to the American Land Title Association, if you look at four random home purchases happening right now, one of them will have a title problem during the search process. That sounds scary, but most title problems can be fixed without ending the deal. Common problems that can be fixed include clerical mistakes in public records (like wrong names or typos in legal descriptions), old liens that were paid off but never properly released, missing heirs' signatures in estate transfers, and judgments that have expired but are still shown in the records.
Title companies are helpful because they know how to quickly fix these kinds of problems. They know which county offices to call, which forms to fill out, and how to get old lienholders to sign satisfaction documents. The time it takes to fix title problems varies. A simple clerical error might only take a few days, but finding an heir who moved to another state could take weeks. That's why you should order your title search early in the process, not three days before your closing.
3. Liens Are the Most Common Title Problem (And They're Harder to Get Rid Of Than You Think) According to First American Title Insurance, liens are by far the most common type of title defect. A lien is a legal claim on property that someone owes money to, like a mortgage lender, the county tax collector, a contractor who did work and never got paid, the homeowners association, or even a creditor who won a court case. This is the most important thing to remember: liens are attached to the property, not the person. The lien stays with the property until the debt is paid off, even if the debt was made by a previous owner years ago.
Here's an example from the real world. Think about how the seller didn't pay the contractor $15,000 for the kitchen remodel in 2019. The contractor put a mechanic's lien on the property. The seller got a new loan in 2021, but somehow the lien didn't get paid off or caught. It's 2026 now, and you're buying the house. If your title search doesn't find that lien, you could close on the house and then have the contractor knock on your door three months later and demand payment. If you don't pay, he can legally take your new home away from you. This is exactly what title searches are for.
Some common types of liens are mortgage liens (first mortgages, second mortgages, HELOCs that weren't paid off), tax liens (unpaid property taxes, IRS tax liens, state tax liens), mechanic's liens (contractors, subcontractors, material suppliers), HOA liens (unpaid association dues and assessments), and judgment liens (court judgments for unpaid debts, child support, alimony). The title search should find all of these, and they should be taken care of before the closing. The seller can either pay them off with the money from the sale or include them in the terms of the sale.
4. The timeline changes more than you might think. The first article said that title searches can take anywhere from a few hours to two weeks. This is true, but it doesn't explain what affects the timeline. If you are buying a new home in a newer subdivision with a simple ownership history (the original builder sold it to one owner, who is now selling it to you), the title search could really be done in a day. The property doesn't have a lot of history, the records are digital and easy to find, and there isn't much to go through.
On the other hand, think about buying a Victorian house from 1890 that has had eight owners, two foreclosures, an estate settlement, and a divorce. The title company needs to check the full chain of ownership going back decades, make sure that every transfer was legal, and look for any problems that might still be there from previous ownership changes. This could take two weeks or more. Researchers have to go to courthouses in person and look through microfiche or paper records by hand, which takes longer in areas with bad public record systems or incomplete digitization.
Most major cities have digitized their property records by 2026. This has made the search process much faster than it was ten years ago. But smaller areas and rural counties may still be using systems that are only partially paper-based. If you're buying in a remote area or a place that doesn't use technology very often, make sure your contract has extra time for the title work to be done.
5. Title and deed are not the same thing (and you need both). A lot of first-time buyers get confused by this, so let me explain it clearly. The property title isn't a piece of paper; it's a legal term that describes your rights to own the property. You have the right to own, use, control, and sell the property. The deed, on the other hand, is the actual piece of paper (or digital file) that gives you the title from the seller. The deed describes the property, names the current and new owners, and, when signed, notarized, and recorded correctly, it shows that the title has changed hands.
The title is like your marriage itself; it's the legal relationship, the rights and duties that come with being married. The deed is like the marriage certificate; it shows that the marriage exists and tells when and how it happened. You need both. Even if a "imperfect deed" successfully transfers ownership at first, it can cause problems later on. An "imperfect deed" is one that is signed but not notarized, has wrong legal descriptions, or wasn't properly witnessed. A title search checks to see if all the deeds in the property's chain of title are valid.
6. You're not just checking who owns it; you're also checking who can use it. Too A lot of buyers only care about whether the seller owns the house and don't think about the restrictions on how it can be used that the title search will show. These can have a big effect on how you can use your property. Some common restrictions are deed restrictions and restrictive covenants (rules set by the developer or subdivision, like minimum square footage requirements, architectural style restrictions, and limits on what you can build or add), easements (rights for others to use part of your property, like utility companies accessing power lines, neighbors with right-of-way to reach their property, or shared driveways), zoning limitations (commercial use prohibited in residential zones, home business restrictions, and limits on the number of unrelated residents), HOA rules (if the property is in a homeowners association, you're bound by their covenants, conditions, and restrictions), and environmental restrictions (wetland designations, protected species habitat, and historical preservation requirements).
This is important because: You buy a house with the idea of running your home-based consulting business there, but after you close, you find out that the deed restrictions don't allow any business activity. Or you want to put a workshop in the backyard, but you find out that there is a drainage easement going through that exact spot, so you can't build there. You should be able to see these limits in the title search so you can decide if the property really meets your needs.
7. Title insurance is your safety net for things that the search missed. No matter how thorough, a title search can't find everything. There may be mistakes in public records. It might not be possible to find forged signatures from decades ago. Years later, an unknown heir might show up. First American Title Insurance says that fraud and forgery cases, which are not very common, make up 21% of all title insurance claims. The average claim for fraud and forgery costs $143,000. Title insurance protects against these kinds of terrible situations.
It's important to know the difference between the two kinds of title insurance. Your mortgage company requires you to get lender's title insurance. This protects the lender's financial interest in the property up to the loan amount. They're protected if a title defect comes up and the lender loses money, but you're not. Owner's title insurance is not required, but it is highly recommended because it protects your equity in the property. Owner's title insurance costs between $500 and $1,500 once, depending on the value of the property. It protects you for as long as you own the home.
Title insurance is like insurance against things you don't know about. The title search finds the "known unknowns," which are problems that can be found in public records if you look hard enough. Title insurance protects you from "unknown unknowns," which are legal claims that you can't find through normal search methods. That safety net is important because 42% of title defects in 2025 closings were unknown to the seller.
When you get clear title to a property, you get what lawyers call the "bundle of rights." This isn't just fancy legal talk; it's the exact set of ownership rights that tell you what you can do with your property. When you buy real estate, knowing these rights helps you understand what you're really getting.
Control Right You have the right to use the property however you want, as long as it is legal and follows local laws and any restrictions in the deed. You can live in it, rent it out, use it as a vacation home, or leave it empty. It's up to you. You have the right to control your property, which means you can paint the walls purple, plant flowers in the yard however you want, and do whatever else you want as long as it is legal and follows the rules.
Local zoning laws (you can't open a factory in a residential area), HOA rules if they apply, deed restrictions that come with the property, and basic laws that stop you from using the property for illegal activities all limit this right. But within those limits, you are in charge.
Right to Own This means you have the right to live on the property. You have full ownership of the home if you have paid off your mortgage or bought it with cash. There's a small difference, though, if you got a mortgage to buy the property. The lender has a lien on it, which means they have a secured interest in it. You still own and live in the property, but if you don't pay your loan on time, the lender has the legal right to foreclose and take it back.
In some states, this is done through a mortgage system in which you own the property but give the lender a lien. In some states, the trust deed system means that the lender technically owns the property until the loan is paid off. In either case, the end result is the same: you live there and have control over it, but you owe the lender money that is backed by the property. This is why it's so important to keep up with your property taxes and homeowners insurance. If you don't, the lender can say you're in default even if you're on time with your mortgage payments.
Exclusion Right You have the right to decide who can enter your property because of the right of exclusion. You can ask people to leave if you don't want them there, and you can call the police to get rid of trespassers. This is a basic right of ownership that sets property owners apart from renters, who don't have the same power to permanently keep people out of someone else's property.
This right does have some important exceptions. Even if you don't want them to, police with a valid warrant can enter your property. Utility workers usually have the right to come onto your property to fix equipment. Firefighters can go in to fix fire hazards in some places. Code enforcement officers may have the right to look for violations. But other than these specific legal exceptions, you have a strong and enforceable right to keep others out.
Right to Dispose You have the right to give someone else ownership of the property, either permanently (by selling it) or temporarily (by renting it out, giving someone a life estate, or leaving it to your heirs in your will). You can only fully use your right of disposition when you own the property outright. If you have a mortgage, the lender's lien makes it hard for you to sell your home. You can't give the title to a buyer unless you pay off the loan or have the buyer take it over with the lender's permission.
This right is what makes real estate a valuable asset that you can give to your children or turn into cash when you need it. It's also what makes real estate investing possible: you can buy a property, hold it while it goes up in value and makes money from rent, and then sell it later, giving the buyer all your rights.
One of the reasons title searches have become even more critical in recent years is the persistent—though not epidemic—problem of title fraud. According to the National Association of REALTORS®' 2025 Deed & Title Fraud Survey, 63% of real estate professionals reported awareness of title fraud or deed theft in their markets within the past 12 months. The Northeast saw the highest prevalence at 92%, while these scams are more common in central cities and suburban areas than in rural locations.
Here's what title fraud typically looks like: a criminal impersonates a property owner (often targeting vacant land or properties with absentee owners), forges the owner's signature on a deed, and either sells the property to an unsuspecting buyer or takes out loans against it. The real owner doesn't discover the fraud until they try to sell, refinance, or receive a foreclosure notice for a loan they never took out. While the actual occurrence of title fraud is relatively low and declining year-over-year, the consequences for victims are devastating.
What's reassuring is that according to All Things Secured's analysis of FBI data, home title theft is decreasing annually—down nearly 20% year-over-year. This isn't because of expensive title lock services (which I generally don't recommend for average homeowners), but because banks, title companies, and recording offices have improved their verification procedures and detection systems. However, the risk isn't zero, which is why title insurance remains an important protection even after a thorough search.
Based on data from multiple sources including Land Title Guarantee Company (which found that 36% of all transactions have some title issue) and analysis from California real estate attorneys at Estavillo Law, here are the most frequent problems that surface during title searches.
These are clerical mistakes in the government's property records—misspelled names, incorrect property descriptions, wrong lot numbers, transposed digits in legal descriptions, or documents filed under the wrong parcel number. While these seem minor, they can create serious confusion about who owns what. California's Civil Code Section 1213 governs the process for correcting these errors, which typically involves filing a corrective deed or affidavit. Most recording errors can be fixed within a few days to a couple of weeks once identified.
We talked about liens earlier, but it's worth emphasizing that many liens are genuinely unknown to the current owner. A contractor filed a mechanic's lien 10 years ago and the seller never received the notice. The IRS placed a tax lien during a previous owner's financial troubles and it was never released. An HOA assessment lien from 2018 got missed during a refinance. First American Title Insurance reports that liens are far and away the most common title defect, and they're the most expensive to resolve if not caught before closing.
Sometimes a deed was signed by someone who didn't have legal capacity to transfer the property—a minor, someone mentally incapacitated by dementia or mental illness, someone acting under duress or fraud. These deeds can be challenged years later, calling your ownership into question. This is particularly common in estate situations where all heirs didn't properly sign off on the transfer, or in divorce situations where one spouse forged the other's signature on transfer documents.
When property passes through estate proceedings, all legal heirs must be properly notified and given opportunity to claim their interest. Sometimes an heir wasn't located during probate, or their signature was never obtained, or they were mistakenly thought to have waived their rights. Years later, this missing heir surfaces and claims a percentage ownership in the property. This is more common with inherited properties and homes that have been in families for generations.
The legal description of the property in old deeds might not match current survey markers. A fence was built on the wrong side of the property line decades ago. An encroachment exists where part of a neighbor's building sits on your lot, or vice versa. These boundary issues often don't surface until someone orders a new survey, which is why it's smart to get one when buying property, especially older homes on large lots.
Let's talk about numbers. Knowing the whole cost picture helps you make a good budget and avoid surprises at closing. Here are the prices you can expect to pay for different title-related services.
Title Search Fee: For simple residential properties, it costs between $75 and $200. For more complicated properties with a lot of history or problems, it costs between $200 and $400. This fee pays for the title company's time spent doing research, accessing records, and writing the title abstract, which is a summary of their findings.
For instance, in New Jersey, a basic O&E report costs $87.95, while a full search with multiple updates and lien checks costs $320 or more.
Title Settlement Fee Range: This fee can be anywhere from $200 to $500, depending on where you live and what company you use. This is also known as the closing fee. It pays for the title company's work to organize the closing, make settlement statements, give out money, and record documents. Some title companies include this in other fees, so you might see it on your closing disclosure as "settlement services" or "closing services."
Cost of Lender's Title Insurance: Usually between $500 and $1,000 for average mortgages, depending on the amount of the loan. This protects the lender's interest in the property and is almost always needed if you're getting a loan to buy it. You only have to pay the premium once, at closing. As you pay off your loan, the coverage goes down. The lender's policy ends when the loan is paid off because the lender no longer has anything to protect.
Owner's Title Insurance: The cost is based on the price of the home, and it usually costs between $500 and $1,500. This protects your equity and stays in place as long as you own the property. In most states, it's not required, but it's one of the best insurance values in real estate because it costs less than 0.5% of your home's value and protects you from huge losses. For $400,000, paying $800 for lifetime protection against title defects is a great deal.
Abstract Update Fee: $200 to $400 to update an existing abstract, and $1,000 or more to make a new abstract if one doesn't already exist. The abstract is a short history of all the legal actions and transactions that have affected the property. Many properties already have abstracts that only need to be updated with new transactions. To make a new abstract, you have to go back to the original land grant or deed, which takes a lot of time and money.
Recording Fees: The average cost is about $125, but it varies by state and county. This is how much the county will charge you to put your deed and mortgage documents in the public records. Some places charge a flat fee for each document, while others charge by the page. These are fees that the government charges, not the title company. However, the title company usually collects and pays them for you.
While the title company does the heavy lifting, you can make the process smoother and potentially faster by being proactive about certain things.
Order the title search as soon as you have a ratified purchase contract, not three days before your closing date. This gives adequate time to resolve any issues that surface. If you wait until the last minute and the search reveals a lien that takes two weeks to clear up, you'll be scrambling to extend your closing date or risk losing the deal entirely.
Build at least 2-3 weeks into your timeline for title work, more if you're buying an older property or one with multiple previous owners.
During negotiations, ask the seller directly: Are there any liens, judgments, or encumbrances you're aware of? Have you refinanced recently, and were all previous loans paid off? Are there any pending legal issues affecting the property? Have you granted any easements or rights-of-way? While 42% of title defects are unknown to the seller, the other 58% are things they do know about (or should know about). Getting this information early helps your title company know what to look for.
Even though it's not always required, ordering a current survey (typically $300-$500) can head off boundary disputes before they become problems. The survey will show the exact property lines, any encroachments, easements, and the locations of structures and improvements. If the survey reveals that the neighbor's fence is actually 2 feet onto your property, you can address this during negotiations rather than discovering it after closing.
When the title company completes their search, they'll issue a preliminary title report (also called a title commitment) that lists what they found. Don't just glance at it—read it thoroughly. Look at the legal description and make sure it matches the property you think you're buying. Review all the exceptions and exclusions listed. If you see anything that concerns you or don't understand, ask questions immediately. This is your chance to address problems before they become your problems.
Cash buyers often skip title insurance because there's no lender requiring it. This is a mistake. You're actually at higher risk as a cash buyer because you have more equity at stake from day one. The one-time premium for owner's title insurance is a small price to pay for protection against unforeseen title defects that could surface five or ten years down the road. Remember: 42% of defects weren't known to the seller, which means even the most honest, well-intentioned sellers can unknowingly sell you a property with hidden title issues.
I have worked in the mortgage business long enough to know what happens when people try to save money on the basics. Not doing a title search or doing a quick, cheap one is one of the worst ways to save money in real estate, along with not having a home inspection. If you end up with a property that has a clouded title, the few hundred dollars you might save by cutting corners could quickly turn into tens of thousands of dollars in losses.
Keep in mind these important facts: one in four transactions has a title problem, 42% of title defects are unknown to the seller, liens are hard to get rid of and cost a lot of money, and title insurance is your safety net for what the search missed. The real estate market in 2026 is different because people are more aware of fraud (63% of professionals see fraud in their markets) and ownership histories are getting more complicated as properties change hands more than once.
Here's my simple advice: Get a full title search done early in the process. Read the initial title report carefully, and if you don't understand something, ask questions. Even if you're paying cash, you should still get owner's title insurance. These aren't just nice-to-haves; they're necessary protections that make sure the house you're buying has the clear, marketable title you need to fully enjoy your ownership rights.
And if you're working with a lender who needs you to do these things anyway, don't think of them as bureaucratic roadblocks. Instead, think of them as someone else looking out for your best interests by making sure the property you're buying is really, legally, the seller's to sell. The title search fee is worth every penny for that peace of mind.
Yes, for sure. There is no connection between trust and title problems. The seller may really think they have a clean title, but 42% of defects in 2025 closings were things the seller didn't even know about. Uncle Bob might not know about the contractor lien from 2015, the fact that his ex-wife didn't sign off on the property transfer in their divorce, or the fact that there is a utility easement in the backyard. The title search protects everyone, including you, the seller, and any lenders, by finding and fixing these problems before any money is exchanged.
The results of a title search show the property's status at that time. Most of the time, they are good for 30 to 90 days, depending on the title company's rules and the way things are done in the area. If your closing is delayed past this point, you'll need to do a new search to make sure no new liens or judgments were filed in the meantime. This is why you shouldn't wait too long between ordering your search and closing. The longer you wait, the more likely it is that something new will be recorded against the property.
Yes, in theory, because property records are public, but in practice, it's a bad idea. Professional title searchers know what to look for, where to find it, and how to make sense of what they find. They can use specialized databases and proprietary research tools that gather information from many sources. They know what different documents mean in a legal sense and can spot problems that a regular person might miss. More importantly, if a professional title company makes a mistake, they have insurance for mistakes and missed items. If you miss something during your own search, you have no way to get it back. The $150 to $200 you would save isn't worth the risk.
It depends on the problem and what your purchase agreement says. Most contracts say that the seller must deliver clear title for the deal to go through. This means that the seller must fix any title problems before the deal closes. The seller has to pay off the lien if there is one. The seller needs to settle any disagreements about the boundary. You usually have the right to walk away and get your earnest money back if the problem is too complicated to be fixed within the time frame of your contract. Sometimes, buyers and sellers work out a deal. For example, you might agree to take a certain easement in exchange for a lower price.
Yes, because title searches don't always work. They can only find things that are in public records, and only if those records are full and correct. Owner's title insurance protects against mistakes in public records, undiscovered liens, forged documents, missing heirs, invalid deeds, survey errors, and fraud. Many of these things might not be found even with the most thorough search. According to First American Title, the insurance companies paid out $596 million in claims in 2022. The average amount for fraud and forgery cases was $143,000. You should pay the one-time fee of $500 to $1,500 to protect yourself from these horrible situations for the rest of your life.
New construction is usually easier because there isn't much history of ownership—just the land's history and the builder's title. You still need to make sure that the builder really owns the land, that all of the subcontractors have been paid (to avoid mechanic's liens), and that the builder has clear title to transfer. For homes that are already built, the search needs to go back through all the previous owners to find the full chain of title. This takes longer and reveals more possible problems. But "simpler" doesn't mean "skip it." New construction properties can still have title problems, especially if there are unpaid subcontractors' liens or mistakes in the land records.
The title search is the process of looking through records to find documents that are important. The title abstract is the summary document that shows what the search found. It lists all the deeds, mortgages, liens, easements, and other things that affect the title. The title opinion is the lawyer's legal opinion on whether the title can be sold based on what the abstract shows (in states where lawyers do title work). To put it another way, the search is the research, the abstract is the report on what was found, and the opinion is the expert's opinion on what those findings mean.
Sometimes, but it's much harder and costs more than fixing it before closing. If you find a problem with your title after closing, this is when your owner's title insurance comes in handy. The insurance company will either fix the problem, pay you for your loss, or defend you in court if someone questions your title. If you don't have title insurance, you'll have to deal with the problem on your own, which could mean hiring a lawyer, finding previous owners to sign documents that fix the problem, or even losing the property in the worst cases. This is why the title work needs to be done right before closing, and why title insurance is there to protect against mistakes.
Fact Checked