Title Search Basics,
the search and the closing
What a title search is and how to do one, and the documents around it: the chain of title, owner and encumbrance reports, title commitments, owner and lender title insurance, escrow, seller closing costs and quiet title actions.
Cloud on Title: Meaning, Examples and How to Clear One
A cloud on title is any recorded claim, lien or defect that casts doubt on who owns a property or on what they own. Common examples are an unreleased mortgage, a judgment lien, a forged or misdescribed deed, and a missing heir. Most clouds are cleared by a recorded release or corrective document; the rest need a quiet title action.
Read the guide · 8 min readHow Much Does a Title Search Cost? Public Fees, Free Searches and Paid Reports
A title search can cost little if you do it yourself, because many county indexes are free to search, but copies and clerk searches carry fees set by law, such as $2 per year searched by a Florida clerk. A records-based report costs more because someone reads every document; HeritageDeed charges $49 per report.
Read the guide · 9 min readChain of Title: What It Is, an Example, and How It Differs From an Abstract of Title
A chain of title is the historical record of ownership transfers of a specific property, listed in order from an earlier owner to the current one. Each deed should link to the next, with no gap. An abstract of title is different: it summarizes everything recorded, including liens, not only the transfers.
Read the guide · 9 min readEstimated Closing Costs for Seller: What You Pay and How Taxes Differ by State
Estimated closing costs for a seller are the amounts subtracted from sale proceeds at closing: the mortgage payoff, any lien payoffs, transfer taxes where the seller owes them, title and settlement charges the contract assigns to the seller, and recording fees for release documents. No official national average exists, so estimate from your payoff letter and your state's rules.
Read the guide · 11 min readHow to Do a Title Search on a Property, Step by Step
To do a title search, identify the parcel, read the current deed and trace earlier deeds back through the chain of title, then list every mortgage, lien, judgment and lis pendens recorded against the property or its owners and check whether each one was released. The records are public at the county recorder or clerk.
Read the guide · 8 min readLender's Title Insurance: What It Covers, Who Pays and Why It Is Required
Lender's title insurance is a policy that protects a mortgage lender against loss if the lender's lien turns out to be invalid or ranks behind another claim. The borrower usually pays the one-time premium at closing, but the borrower is not the insured. The lender is. Owner's coverage is a separate policy.
Read the guide · 8 min readOwner and Encumbrance Report (O&E): What It Shows and What It Misses
An owner and encumbrance report, also called an O&E report, names the current owner of record and lists the encumbrances recorded against the property: mortgages, deeds of trust, liens, judgments and similar claims. It is a limited search. It does not trace the full chain of title and it is not title insurance.
Read the guide · 9 min readOwner's Title Insurance Policy: What It Covers, What It Excludes, and How Long It Lasts
An owner's title insurance policy, often searched as title owner title insurance, protects a buyer against ownership problems that arose before the purchase but were not known at closing, such as forgery or a missing heir. You pay one premium at closing, and in Texas the coverage lasts as long as you own the property.
Read the guide · 9 min readQuiet Title Action: What It Is, When It Is Used and How It Works
A quiet title action is a lawsuit that asks a court to decide who owns a piece of real property and to end competing claims against it. It is used to remove a cloud on title, such as an old lien, a defective deed or an adverse claim. A winning judgment can be recorded and is meant to be final.
Read the guide · 8 min readTitle Commitment: What It Is, How to Read It, and How It Differs From a Title Search
A title commitment is a title insurer's written statement, issued before closing, that it is willing to issue a title insurance policy if stated requirements are met. It lists the requirements to insure and the exceptions the policy will carry. It is not a title search report, and it is not the policy itself.
Read the guide · 9 min readWhat Does a Title Company Do? Search, Insurance and Closing Explained
What does a title company do? It searches public records for the history of a property, examines what it finds, clears problems it can, issues a title insurance commitment and policy, and often handles the closing and the disbursement of funds. It protects the buyer and lender from title defects; it does not inspect the house.
Read the guide · 9 min readWhat Is Escrow in Real Estate: How It Works and Who Does What
Escrow in real estate is an arrangement where a neutral third party, the escrow agent, holds the buyer's money and the closing documents until the contract conditions are met, then releases them. The word also names the lender-run escrow account that pays property taxes and insurance from your monthly payment.
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