What is Title Search and Title Insurance?

What is the title search?

It is conducted during the closing process to ensure that all records are related to the property, have been properly prepared, as well as debts guaranteed by the property, satisfied and recorded. It is subsequently prepared and issued to outline the resulting findings.

It ensures that property can change hands during the sale without any discrepancies, error or fraudulent omissions endangering the satisfactory completion of the sale and subsequent ownership.

What information is included in a title search?

• The chain of the title from owner to owner, all the way to the original land grant or sale.
• The satisfaction of the liens, the financial claims are made against the property for payment of debts.
• The forgery of documents, fraud, errors, omissions and other accidental or purposeful errors which could impact your claim to ownership.

How long is the title search valid?

It is valid until the new information arises which calls its result into question. It could be conducted which shows a clear chain of title and it could be complicated by the subsequent discovery of additional will, deed of sale and documentation which calls the original finding into question.

How is a title search conducted?

It uses a property lien search, public records, Legal judgement and a site inspection to determine the property in question which has a clear chain of title and it is free of any encroachment or other physical issues which call into question the ownership of property.

What is title insurance?

It offers the protection after the sale against subsequent claims of ownership which includes the financial and legal ramifications of such a claim.

It is considered important enough by lenders that it is mandatory for financed homes. 

What does a title company do?

• It conducted the title search and invested the discrepancies to clear the title for transfer of ownership.
• Issuing the title insurance policy on behalf of the lender and the owner as required.
• Most title companies maintain and facilitate escrow account on behalf of the sellers and buyers during the closing process.

How long is title insurance good for?

For lenders, The title insurance lasts for the terms of mortgage loans to protect the lenders financial stake in the property.
For buyers, the owner's title insurance is good for the life of their ownership stake in the property.

Can I buy title insurance after closing?

You can buy the title insurance after closing but it should a new issue arise which was not identified in the title search prior to closing, it may be hard pressed to buy title insurance after closing.