How to Read a Property Title Search
Prior to purchasing a piece of property, most banks will require that a property title search be done. This search is performed to ensure that the title of the property in question is being granted to the new owner free and clear of any back liens or previous owner holdings. Reading and understanding these reports can be confusing.
- Identify the various sections of the property report. The property report as a whole can be very confusing. However, readers will notice that the property report is actually composed of smaller, manageable sections. Scan through the report and locate each section header.
- Read the property description. The property description is a long, detailed legal description of the property being researched. It is developed by a title researcher and survey company who measure the exact size and dimensions of the property being described.
- Read the property title section and find the current owners of the property. The property title will provide you with a detailed list of the various owners who have held the property according to the jurisdiction's public record. You will be most concerned with the current owner who has title to the property. If you are considering purchasing this property, the current title holder or their representative should be the party who is selling the property to you.
- Review all of the liens that are currently against the property. Typically, a property will have a mortgage lien filed against it. You may also notice mortgage assignments which record the selling of a mortgage to another financial institution. Other parties may file liens against a property, including federal tax liens, state tax liens, judgment liens and mechanics' liens.
- Determine whether or not any easements exist on the property. Easements give other people or organizations the right to use the property. These easements are transferred with the property title. Typically, easements will be granted for shared driveways, public walkways or to utility companies.