What Public Records Are Searched During a Title Examination?

What Public Records Are Searched During a Title Examination?

A title examination is a crucial process in real estate transactions that ensures the property’s title is clear of defects and legally transferable. This process involves searching various public records to verify ownership, identify encumbrances, and detect potential legal issues. Understanding the different types of public records examined can provide insight into the importance of due diligence in property transactions.

1. Deed Records

Deed records are the first and most essential records examined during a title search. Deeds provide a historical chain of ownership, showing how the property has changed hands over time. A title examiner looks for:

The legitimacy of past transfers
Proper recording of deeds
Gaps or breaks in the chain of title
Forged or fraudulent transactions

These records are typically housed in the county recorder’s office and offer a foundational understanding of ownership history.

2. Mortgage and Lien Records

Title searches include reviewing mortgage and lien records to determine if any outstanding debts are tied to the property. A title examiner checks for:

Unpaid mortgages
Tax liens
Mechanic’s liens (filed by contractors for unpaid work)
Homeowners’ association (HOA) liens
Judgment liens from lawsuits

A clear title should have no unpaid liens or any existing liens must be settled before the transfer of ownership.

3. Property Tax Records

Unpaid property taxes can create a legal claim against the property. Title examiners review tax records to ensure that all taxes have been paid up to date. Delinquent property taxes could lead to a tax lien or even a tax foreclosure sale, making it essential to confirm the status of these records.

4. Easements and Rights-of-Way

Easements and rights-of-way give individuals or entities certain legal rights to use a portion of the property for specific purposes. These could include:

Utility easements for power lines, sewer lines, or pipelines
Public access easements for roads or sidewalks
Private easements allowing a neighbor access to a shared driveway

Title searches include reviewing recorded easements to ensure prospective buyers know of any restrictions or obligations.

5. Restrictions and Covenants

Some properties are subject to restrictive covenants, which are rules imposed by developers or homeowners’ associations. These rules might regulate:

Property use (e.g., residential vs. commercial)
Architectural styles
Landscaping requirements

Title searches uncover these restrictions to inform buyers of any limitations they may face in property use or modifications.

6. Court Records (Judgments and Lawsuits)

A property owner’s legal history can impact the title. Title examiners check court records for:

Pending lawsuits involving the property
Divorce settlements that may impact ownership
Probate cases determining inheritance rights

If the owner is involved in litigation, the court could place a judgment lien on the property, preventing its sale until the debt is cleared.

7. Bankruptcy Records

If a property owner has filed for bankruptcy, the property could be part of the bankruptcy estate, meaning it cannot be sold without court approval. Title examiners check bankruptcy records to ensure that:

The property is not under bankruptcy protection
Any related liens or claims have been resolved

Failing to review bankruptcy records can lead to legal complications for buyers and lenders.

8. Foreclosure Records

Suppose the property has been involved in a foreclosure. In that case, a title search will verify that the foreclosure process was legally conducted and adequately recorded. Examining these records helps ensure that there are no lingering claims or disputes over the foreclosure.

9. Survey and Boundary Records

Survey records help establish the precise legal boundaries of a property. A title examiner reviews:

Boundary lines
Encroachments (e.g., a neighbor’s fence or structure crossing the property line)
Disputes over property lines

Ensuring accurate property boundaries is essential to prevent future legal conflicts.

10. Zoning and Land Use Records

Zoning laws regulate how a property can be used. Title searches review zoning records to confirm that the property’s current and intended use complies with local regulations. This is particularly important for commercial or mixed-use properties.

11. Death and Probate Records

If a previous owner has passed away, probate records may need to be examined to determine rightful ownership. Title examiners check these records to ensure the property was legally transferred to heirs or appropriately sold through estate settlement.

12. Name Searches and Fraud Checks

Title examiners conduct name searches to ensure the property owner is not associated with fraudulent activity. This includes:

Confirming identity through government records
Checking for fraudulent filings or forged documents
Identifying any aliases used in past transactions

Fraudulent transfers can result in legal battles, making this an essential step in title examinations.

13. UCC (Uniform Commercial Code) Filings

For properties involving commercial transactions, UCC filings may be reviewed to check for financial claims against the property’s fixtures or equipment. This is particularly relevant for properties with business-related financing.

Conclusion

A thorough title examination is essential for protecting buyers and lenders from legal and financial risks. By reviewing deed records, liens, tax payments, easements, court judgments, and other public records, title examiners ensure that a property’s title is clear and marketable. Understanding these public records helps buyers make informed decisions and avoid legal complications in real estate transactions.

Learn more about our comprehensive title insurance services here.

Thank you for reading! If you enjoyed this article and want to explore more content on similar topics, check out our other blogs at Sonic Loans, Sonic Realty, and Sonic Title. We have a wealth of information designed to help you navigate the world of real estate and finance. Happy reading!

Provider and Settlement Service	Charge or Range of Charges
Sonic Realty LLC	1%-6% of purchase price
Sonic Title Agency, LLC	Title Insurance Policy: $950 - $1706 on a $250,000 property. (Rates vary and are dependent on the state, selling price, and loan amount on the property.) Title Search Fee: $250 - $325 (where applicable) Closing Fee: $450 - $650
Sonic Loans Inc. This company provides various real estate mortgage loan origination activities either as a third-party originator or a mortgage broker, including loan pre-qualification, competitive bid process (when providing third-party origination services), loan origination, loan pre-approval, loan structuring, processing, and closing.	Loan Origination Charge: 0-3 % of loan amount (may include 3^rd party fees) Loan Discount Fee/points: 0.5%-6% of loan amount. Application/Processing Fee: $0.00 - $875.00 Flood and tax service: $0.00 - $95.00 Underwriting Fee: $0.00 - $1295.00 Document Review Fee: $0.00 - $400.00 Appraisal Fee: $0.00 - $850.00 Credit Report Fee: $0.00 - $135.00 Actual charges may vary according to the particular lender selected, the particular services provided, and the underlying transaction, borrower selections, etc. Some or all of these fees may be charged by third parties and/or the Member Mortgage Lender/Mortgage Broker. The Member Lenders and Mortgage Brokers have agreed to pay a fee ranging from 0.5% to 2.75% of the loan amount to Sonic Loans in connection with a range of loan origination services provided by Sonic Loans to the Member Lender/Mortgage Broker. The fees are paid either directly to Sonic Loans by the Member Lender/Mortgage Broker or billed directly to you at closing.

Provider and Settlement Service	Charge or Range of Charges
Appraisal Fee	$0-$800
Credit Report Fee	$63-$125

What Public Records Are Searched During a Title Examination?