What a title search is
A title search reviews the recorded documents tied to a property, including deeds, mortgages, liens, judgments, and court records, to confirm that the seller can transfer clear ownership. The results go into a title commitment, which lists what must be paid off or resolved before closing and becomes the basis for the buyer's title insurance.
Cash buyers use title searches too. There's no lender requiring one, but no careful buyer pays for a property without confirming what comes with it.
Problems a title search commonly finds
- Open mortgages and home equity lines, including loans paid off years ago that were never formally released
- Judgment liens from lawsuits or unpaid debts
- Federal tax liens and delinquent property taxes
- Code enforcement fines and municipal liens
- Unpaid HOA or condominium assessments
- Mechanic's liens filed by contractors who say they weren't paid
- An owner on the deed who has died, or an ex-spouse who is still listed
- Errors such as misspelled names, a wrong legal description, or a gap in the chain of ownership
How each problem usually gets cleared
- Mortgages and liens: paid from the sale proceeds at closing, using payoff statements from each creditor
- Old loans that were paid but never released: the title company requests a release or satisfaction from the lender, or its successor, and records it
- Judgments against someone with a similar name: often cleared with a signed affidavit that the seller is not that person
- A deceased owner: handled through probate or, in some states, an affidavit of heirship or a similar simplified process
- An ex-spouse or co-owner still on title: they sign the deed or a separate quitclaim deed, often as the divorce decree requires
- Serious defects in the chain of ownership: may require a quiet title lawsuit, which takes months rather than weeks
The municipal lien search
In many areas, the title company also runs a separate municipal lien search. It checks for open or expired permits, code enforcement cases, and unpaid city utility bills that a standard search of recorded documents can miss. Open permits in particular can take time to close, so it helps to learn about them early.
Why this sets the pace of your sale
In a cash sale, title work is usually what determines the closing date. The buyer's money is ready, so the question is how long it takes to clear what the search finds. A clean search can support a fast closing. An unreleased mortgage from 2009 can add weeks.
What you can do early
Tell the buyer and the title company about anything you already know. Surprises cost more time than known issues. Have these ready if they apply:
- Your deed and recent mortgage statements
- Contact details for any second mortgage or home equity lender
- HOA or condo association contact information
- A divorce decree, if a former spouse is on the title
- A death certificate and letters of administration or testamentary for an inherited property
- Notices about any code case, lawsuit, or judgment
If the liens add up to more than the house is worth
A sale can still be possible. Some lienholders will accept less than the full balance, and a short sale may be possible with the mortgage lender's approval. These negotiations take time and have tax and credit consequences, so talk with a real estate attorney before you commit to a plan.
Frequently asked questions
How long does a title search take?
A routine search often takes a few days to a couple of weeks. Problems that need a release, a probate filing, or a court action can take much longer.
Can I sell a house that has a lien on it?
Usually, yes. Most liens are paid from the sale proceeds at closing. The main question is whether the proceeds cover everything owed.
What's the difference between a title search and title insurance?
The search finds what is recorded against the property. Title insurance protects against covered problems the search missed, such as forged documents or recording errors.
Who pays for title insurance?
It depends on state and local custom and on your contract. In some areas the seller customarily pays for the owner's policy. In others the buyer does. Your contract should say.
This post is general information, not legal, tax, or financial advice. Laws change and every situation is different, so talk with a qualified professional about yours.