Abstract or Title Search
Definition and meaning of Abstract or Title Search in real estate.
Abstract or title search is the process of examining public land records to confirm a property's legal ownership and identify any encumbrances, liens, easements, or restrictions that affect the transfer of title. This search is typically conducted during the closing process to ensure the seller has the legal right to sell the property and the buyer receives a clear title.
In more detail
A title examiner performs the search by reviewing documents recorded at local government registries, such as county clerk offices, court records, and tax offices. The investigation traces the property's chain of title back through a legally required period, which is typically 30 to 40 years depending on state law.
It checks for outstanding mortgages, tax liens, mechanic's liens, judgments, and easements that could interfere with the buyer's future use of the home. The findings are compiled into a preliminary title report or title commitment. Mortgage lenders require this search before funding a loan to protect their financial interest in the collateral.
Key facts
| Category | Legal, Titles & Closing |
|---|---|
| Required by | Mortgage lenders and title insurance companies |
| Typical timing | During the escrow period, before the final closing date |
| Watch out for | Unrecorded liens or deeds, which may not show up in a standard search |
A title agent conducts an abstract search on a suburban home and discovers an unpaid property tax lien, which the seller must pay off before the transaction can close.
Frequently asked questions
How long does a title search take?
It typically takes anywhere from a few days to two weeks, depending on the complexity of the property's history and the accessibility of the local records.
Who pays for the title search?
The payment varies by local custom and negotiations, but the cost is typically split or covered by either the buyer or the seller as a closing cost.