How to Perform a Title Search
There are many situations which can make a real estate property unsalable, one being a bad chain of title. Since property often moves through several owners over the years, some liens and encumbrances never get cleared on the title. The occupant of the property may appear to have a valid title, also known as "color of title," but may in fact have no legal right to sell the property. Determining all interests in a title is essential before buying property.
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Instructions
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Get the address of the property in question. A surveyor's report or previous owner's deed with the description reading something to the effect of "Pied Acres Subdivision #2, Lot #24, located on the southwest quarter of the north fractional quarter in township N3P J3P" is the most accurate information to have.
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Go to the County Clerk's office and ask for the land or real property division.
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Fill out the form for a title search for the address in question. Note: There may be a fee for the report, copies or hourly use of the microfiche machines. For properties that are not new developments, the microfiche machines will be the research method.
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Compare the description of the land and confirm that the property is the same one being searched.
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Review the chain of title and owners on the deed. This means going back owner by owner and making sure that the ownership was entirely transferred by the previous owner. This is called "indexing." Check for tax liens, mechanic's liens and land encumbrances. Liens mean that the property has been used for collateral and payments have not been satisfied with the lien holder. Encumbrances can be things like a fire road that runs through the property, preventing complete enclosure or development.
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Tips & Warnings
Many escrow companies offer title insurance and do a title search for you when purchasing real estate. Title insurance protects your investment in the event that a lien or encumbrance was not found, causing you to lose your ownership rights. Without title insurance, purchasing a property without a clean title can lead to losing the property and the money invested in it.
