Generally, it should be known that it takes quite a long process and investigation for property to be acquired and this includes the moment the home seller decides to sell the house through the agent or listing agency. As with many parts of the home buying process, a property search is very important, as that is always the first step, one should take to secure the right home. The purpose of this article is to emphasize the importance of a title search and when a title inspection should be done especially when purchasing a house. At the same time, there may be hindrances performing a title examination that could jeopardize the process, extend how long it takes to close a title search, what could make a title search take long, and determine what happens after a title search is done.
How Long Does a Title Search Take?
Before we get into how long a title search takes, let’s first define the topic title search: what is a title search, and how does it work?
A title search is a search for documents on a particular property, that confirms legal ownership of the home, (legal records or both the property and its current owner) and identifies whether there are any claims on the property before transferring the name of the house to you at closing.
A title search can also provide the following information:
- Deed Limitations stating the reasons for which the property usage, what types of construction the city allows on a property, and the number of vehicles allowed at home, etc.
- Any current easements on the property legally allow another party to use someone else’s property. Examples include a utility company taking part of the land to run power lines.
- Liens on the property, such as unpaid debts.
The amount of time taken to conduct a title search vary. If you are doing it on your own, the number of days will be based on how much time you put to gather the information. However, depending on the property and transaction type, this can vary dramatically.
On average, most title search process takes between 10 to 14 days to complete. Also, they are several factors to be in consideration that can affect the time frame.
What Happens After a Title Search?
After completing a title search, the buyer gives a preliminary title report which will indicate whether there are any problems with the property titles. This will give the buyer a good explanation as to whether they want to continue the closing process or not.
If the title search comes back clear or the buyer decides to proceed, the lender will need to approve the loan and the buyer and seller will need to agree on how to proceed if there are any issues with the title. Following that, the closing process can continue, and the property will change hands.
When Is a Title Search Done When Buying a House?
When buying a house, going through a title investigation during escrow when a lender financing a property purchase requests a preliminary report from a title company. Although, a title search can be done anytime, by anyone, such as a buyer (who might not need a lender’s money) or a property owner who is looking to refinance their home.
How Long Does It Take To Do a Title Search?
The average title search time spans 10 to 14 days. If there are issues with the title, some exceptions may extend beyond this time frame. Unless the problems are severe, you can usually expect a two-week delay in purchasing. Several factors can determine the precise time frame.
It is the expert in this field who carries out research, and who takes precise steps to ensure a quick resolution. Title search specialists must conduct inspections and thorough searches without knowing what will turn up.
When compared to other insurance policies, obtaining the title policy may take significantly longer.
How Long Does It Take To Close After a Title Search?
The title search usually takes between 10 and 14 days. It will almost rarely be longer than two weeks. However, some important factors come into play. This entails a professional at the company conducting a thorough inspection and search. This extensive investigation is to determine the next steps in placing a bid and securing a title. As a result, obtaining a title policy may take longer than obtaining other insurance policies.
The title professional will thoroughly examine public records. The goal of the inspection is to determine who owns the property. This will also highlight any potential flaws in the titles. Inconveniencies are the shortcomings.
This clear title demonstrates that the owner of the property owns it freely. It’s an indication that the property does not have any pending clearing title issues, such as collections from creditors or previous mortgages. The owner with a clear title to the property is the true legal and sole owner of that property.
Obtaining title insurance is one of the most important steps in the process of becoming a homeowner. This title insurance protects both the lender and the homebuyer by ensuring that they have a clear title to the property. After the agent signs the purchase agreement, he or she will usually start the title policy.
Related: CLEAR TO CLOSE: All You Need To Know
Why Is My Title Search Taking So Long?
It can take anywhere from a few hours to five days to complete a title search. Several factors can influence the time frame of a title inspection to take so long. Factors include:
- The quantity and accessibility of documents that must be reviewed.
- The property’s age and transaction history.
- Existence of any outstanding liens or other title issues.
- The nature of the transaction and the type of property.
What’s the Main Point of a Title Search?
A title search is done to make sure that there are no problems with the property’s title. It’s one of those behind-the-scenes tasks that must be completed before closing on a property. Most searches are done to get ready for title insurance, but they can be done for other reasons as well. Before giving out a title insurance policy, it’s important to make sure that a piece of real estate has a clean title. This is known as “establishing a clear title,” and it entails a search of courthouse records to ensure that there are no issues that could affect legal ownership of the property.
What is the Order of the Closing Process?
Below are the steps that lead up to the closing process:
- Acceptance of the Purchase Agreement.
- Loan Acceptance.
- Loan creation.
- Home appraisal and credit underwriting by a lender.
- Title and homeowner’s insurance.
- Disclosures at the enclosing process.
- Disclosures at the end.
Why Is the Title Search Done?
A title search is pertinent before purchasing or making sales on a property, as they might bring up an issue that could stop the transfer of the deed. A buyer might identify a hidden debt attached to the property or a lien that might make their lender back out, while a seller might learn they don’t even have the legal right to sell.
How Do Title Searches Determine Who Owns What?
A title search examines the public documents for the property in question. An attorney or title business would typically use a range of legal documents to establish a chain of title and authenticate that the seller is the true owner. Aside from that, the title search will uncover any other financial and/or legal claims against the property.
#1. The Process
An abstractor is the individual who conducts the title search. The abstractor examines public records and works to compile all essential information and legal papers regarding the property that they can uncover in order to establish an abstract of the title. The abstract of title will comprise a chronological listing of all accessible papers and transactions pertaining to the parcel of real estate in question.
The abstract could include information about the current and prior owners. It could also contain previous property surveys, any easements that span the property, and any relevant wills and lawsuits involving the property.
#2. The Results
A title search can reveal any financial decisions made against the owner of that property title that may have an impact on you financially in the future. Outstanding property taxes, liens against the residence, and easements of any type are a few instances of these title issues. If you have any outstanding claims on your property, it could spell disaster for your happily-ever-after in your new house.
It is vital that your property title search reveals clear and unfettered ownership of the property. Otherwise, you may be in for a nasty surprise later on. Fortunately, there are measures to reduce the chance of a claim on your new property’s title.
You can, for example, obtain title insurance or a warranty of title. A one-time purchase of a title insurance policy can protect your ownership claim to the property, so it’s worth considering the cost (which is typically 0.5 – 1.0% of the purchase price and is typically included in your closing costs).
Who is Responsible for Completing the Title Search?
The title search will be performed by an attorney or a title business. The process varies to some extent depending on the state. However, the attorney or title business will normally conduct their research at the county courthouse, recorder’s office, and county assessor’s office. Many of these records are now available online and are not difficult to locate.
The title search will seek for information in the following areas:
- Land records for counties
- Liens on property (both federal and state)
- Liens for construction
- Divorce and property plats
- Probate proceedings
Title searches frequently contain information on the property’s mortgage, taxes, and any other issues that may arise. All of the information is integrated, compiled, and presented as an abstract report.
How Much Is a Title Search?
The truth is that the cost determinant is by the purpose of your search. If this is a significant purpose, it is best to use an authority such as an attorney or title company to conduct this inspection. These basic information services can save you a lot of money. So, no, you don’t have to pay $100-200 for a title inspection, if all you need is basic information and no serious transaction is at stake. The bottom line is that you must use sound judgment when determining how deep to dig and WHY. Also, keep in mind that some states require real estate transactions which an attorney will be handling. Being cheap will not always work.
What Happens After a Title Search?
Following the completion of the title search, the buyer will give a preliminary title report, which will indicate whether there are any issues with the property’s title. This will give the buyer a good idea of whether or not they want to proceed with the closing process. Resolving some issues can be a good step to take, while others may necessitate the termination of the contract.
How Do I Get a PA Title on the Same Day?
You should gather all of the necessary forms, documents, and information before applying to save time. If the title searching comes back clear or the buyer decides to proceed, the lender will need to approve the loan and the buyer and seller will need to agree on how to proceed if there are any issues with the title.
The more you learn, the more at ease you will be with the home-buying process. While title searches are only one part of the process, they are an important part to understand. More articles in The Lender on topics for buyers, sellers, and various types of real estate investors can help you make more informed property purchasing decisions.
Frequently Asked Questions
How Far Back Does a Property Title Search Usually Go?
A title search can take anywhere from a few hours up to five days to complete.
How Long Does It Take a Title Company to Clear a Title?
Typically, it takes roughly 10 to 14 days for the title search. It will rarely ever extend past the normal two-week period.
How far back does a normal title search go?
In some states, it requires a long period of time.