Learn More About the Title Search Process

A thorough title search process can ensure that a property is clear of any liens, encumbrances, or other issues that could affect its ownership or use. Read more about it in this post by Land Title in Minnesota.

When purchasing real estate, it is important to conduct a thorough title search to ensure that the property is free and clear of any liens, encumbrances, or other issues that could affect the buyer's ownership or use of the property. The title search process involves several steps, which are outlined below in detail.

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The Title Search Process

Step 1: Identify the Property

The first step in the title search process is to identify the property that is being searched. This may involve reviewing the legal description of the property, as well as any surveys or maps that are available. The legal description of the property will typically include information such as the property's lot number, block number, and subdivision name. This information can be found in the property's deed or other public records.

Step 2: Obtain a Title Report

Once the property has been identified, the next step is to obtain a title report. A title report is a comprehensive document that provides information about the property's ownership history, including any liens, encumbrances, or other issues that may affect the title. The title report is typically prepared by a title company or other qualified professional. To obtain a title report, the buyer or their agent will typically need to provide the title company with the legal description of the property and any other relevant information, such as the seller's name or the property's address. The title company will then conduct a search of public records to gather information about the property's ownership history.

Step 3: Review the Title Report

Once the title report has been obtained, it should be carefully reviewed to identify any issues that may need to be addressed. The title report will typically include a detailed description of the property, as well as information about the property's ownership history, including any transfers of ownership or changes in the property's legal description. In addition to providing information about the property's ownership history, the title report will also identify any liens, encumbrances, or other issues that could affect the buyer's ownership or use of the property. This may include outstanding mortgages, tax liens, judgments, or other encumbrances that could affect the buyer's ownership of the property.

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Step 4: Resolve Any Outstanding Issues

If any issues are identified in the title report, they must be resolved before the transaction can proceed. This may involve paying off outstanding debts or liens, negotiating with creditors, or taking legal action to clear the title. The process of resolving outstanding issues can be complex and time-consuming, and may require the assistance of an attorney or other qualified professional. One of the most common issues that can arise during the title search process is an outstanding mortgage or lien on the property. If there is an outstanding mortgage or lien, the buyer may be required to pay off the debt before the transaction can proceed. In some cases, the seller may be responsible for paying off the debt as a condition of the sale. Another common issue that can arise during the title search process is a tax lien. A tax lien is a claim against the property by a taxing authority for unpaid taxes. If there is a tax lien on the property, the buyer may be required to pay the outstanding taxes before the transaction can proceed.

Step 5: Conduct a Property Survey

In some cases, a property survey may be necessary to ensure that the property boundaries are accurate and that there are no encroachments or other issues that could affect the buyer's use of the property. A property survey is a detailed map of the property that shows its boundaries, as well as any structures, easements, or other features that may affect the property's use. A property survey may be required by the lender or the title company as a condition of the sale. The cost of the survey is typically paid by the buyer and can range from several hundred to several thousand dollars, depending on the size and complexity of the property.

Step 6: Obtain Title Insurance

Once all outstanding issues have been resolved and the property has been surveyed, the final step in the title search process is to obtain title insurance. Title insurance protects the buyer and the lender against any future claims or disputes that may arise regarding the property's ownership or title. Title insurance is typically required by the lender as a condition of the loan, but buyers can also choose to purchase their own title insurance for added protection. The cost of title insurance is typically based on the purchase price of the property and can range from a few hundred to several thousand dollars.

Make sure you don’t leave your real estate investment unprotected. Get title services that can help you save time and money. Call Land Title in Minnesota at 651-638-1900 to get the help you need.