Real Estate Title Problems: Why a Title Search Matters

When you buy a home, you are not only buying a building and a piece of land. You are also buying the right to own that property, free of claims that someone else may hold. That right is called title. Most buyers never see the records behind it, yet a problem with title can surface years later as a dispute, a cloud on the property, or a costly delay when you try to sell or refinance.

This guide explains what a title search generally checks, why problems happen, and how buyers and owners can protect themselves. Property law and recording systems vary by state and county, so use this page as a general overview.

What a title search looks at

A title search reviews public records about the property. These records are usually kept by the county, often in a land records office or recorder's office. The search looks at past deeds, mortgages, liens, judgments, easements, and other documents that show who has a claim on the property and what that claim is.

The goal is to answer a simple question: who owns this property, and are there any claims that could affect the owner's rights? A good search can reveal a prior owner's mistake, an unpaid tax lien, a contractor's lien, a court judgment against a former owner, or a recorded easement that limits how the land may be used.

Common title problems

Title problems come in many forms. Some are simple, such as a misspelled name on an old deed that needs a correction. Others are more serious. Common examples include:

• A lien for unpaid property taxes or unpaid work on the property
• A judgment against a prior owner that was recorded in the county
• A missing signature or a defective deed in the chain of ownership
• An easement that gives a neighbor or utility a right to use part of the land
• A heirs' claim after a previous owner died without a clear transfer

Some problems are discovered early and can be fixed before closing. Others remain hidden until a buyer tries to sell or refinance. That is one reason many people treat title review as a step that should not be skipped.

What title insurance covers

Title insurance is a policy that protects against certain defects in title that were not found during the search, and against certain claims that arise from past events. There are usually two kinds of policies in a home purchase. A lender's policy protects the lender that is financing the purchase. An owner's policy protects the buyer. Many buyers choose an owner's policy because it protects their own investment, although requirements can differ by lender and location.

Read the exceptions in any title policy. Every policy lists matters it does not cover, and those exceptions can be important. Ask the title company to explain what is excluded and what would have to be fixed before the policy would apply.

Government programs and loan requirements

If you are buying with a government-backed loan or a mortgage assistance program, the lender or program may have additional requirements for the title. The USAGov home buying assistance page lists government programs that can make buying a home easier, and it is a good place to start if you want to understand what options exist. Ask your lender which title requirements apply to your loan.

What buyers can do before closing

Before closing, ask for a copy of the preliminary title report. Read it carefully and ask questions about any item you do not understand. Ask the seller to clear any liens or claims that must be removed before the sale, and get written confirmation that they have been resolved. If a problem cannot be fixed in time, you may need to delay the closing, renegotiate the price, or decide whether to proceed.

Ask whether the property has any recorded easements, boundary issues, or homeowners association rules. These matters do not always appear in a short summary, but they can affect your use of the property for years.

What owners can do

If you already own a home and discover a title issue, do not ignore it. Gather your closing documents, title insurance policy, and any recorded documents that relate to the problem. Contact your title insurer if you have an owner's policy, and ask how to file a claim. Some title defects can be corrected through a recorded document, a court action, or a quiet title process, depending on the facts and your state's law.

Be careful with anyone who offers to fix a title problem for an upfront fee without a clear explanation. Title work is technical, and the right solution depends on the public record.

When a lawyer may help

A real estate lawyer can review a title report, explain exceptions and liens, and advise whether a problem must be fixed before closing. A lawyer can also help if there is a dispute with a neighbor about a boundary or easement, if someone else claims ownership, or if a prior owner's debts appear on the property. A lawyer's review is useful before you sign a purchase agreement that depends on title being clear.

For background on property matters, see the real estate practice page and our guides. Ask how the lawyer charges, whether the first review is a flat fee, and what documents they need. Find out who will handle your file and how quickly they can respond if the closing date is close.

Questions to ask before you close

• Has the title company found any liens, judgments, or easements on this property?
• Which items must be cleared before closing, and who is responsible for each one?
• What exceptions appear in the title insurance policy?
• Is there a survey, and does it match the legal description in the deed?
• What is the process if a new problem appears after closing?
• How do you charge for title review or real estate matters?

Frequently asked questions

Is a title search required?

Most lenders require a title search or title report before they fund a purchase, and many buyers order one anyway. Ask your lender and title company what is required for your transaction.

Does title insurance cover every problem?

No. Title insurance covers defects and claims that fall within the policy's terms and exclusions. Read the policy carefully.

Can a seller hide a title problem?

A seller who knowingly misrepresents title may face legal consequences, but the facts and remedies depend on the situation. A title search helps reduce the risk of surprises.

Do I need a lawyer if the title company handles the closing?

Requirements vary. Some states require an attorney at closing, and others allow title companies to handle it. Ask what applies where you are buying and whether a review is advisable for your situation.

This page is general information, not legal advice. Laws change and every case is different — talk to a licensed attorney about your situation.