What Is a Title Search and Why Does It Matter?

In this blog:

A title search reviews public records connected to real estate to confirm ownership and identify recorded claims, restrictions, or errors that may need to be addressed before a sale closes. In a North Carolina real estate transaction, title work helps your attorney determine whether the seller has the legal right to transfer the property and whether anything in the public record could interfere with your ownership.

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You’ve found the property. You’ve negotiated the contract. You may already be talking about inspections, financing, closing dates, and moving plans. Somewhere in that process, you’ll also hear about a title search.

It’s easy to see that phrase as one more item on a closing checklist. For you, though, the result connects directly to a very basic concern: Is the person selling this property legally able to give you the ownership rights you expect to receive?

That’s what title work helps your North Carolina real estate attorney evaluate before closing.

What Does a Title Search Actually Do?

A title search reviews public records related to a piece of real estate. Your attorney uses those records to trace ownership and look for recorded interests that relate to the property.

This research can reveal an unpaid lien that still attaches to the property, an old deed with an error, an easement giving someone else rights to use part of the property, or a prior ownership issue that needs further review. Each discovery has its own legal significance. Some items require action before closing, while others may simply need to be explained so you know what you’re purchasing.

The whole process exists to find what the public record says about the property before money changes hands and a new deed is recorded.

Why Does Title Work Come Before Closing?

A deed transfers ownership, but signing a deed doesn’t erase every problem already connected to the property.

For example, a recorded lien may need to be paid and released as part of the closing. An error in an earlier deed may require correction. Recorded restrictions or easements may place limits on how you can use part of the property.

Your attorney reviews the title information so these issues can receive legal review during the closing process. That gives you the opportunity to learn what appears in the record and what, if anything, needs to happen before you purchase the property.

Your Real Estate Attorney Should Explain What They Found

You shouldn’t have to decipher courthouse records or unfamiliar real estate terminology on your own.

If title research identifies something relevant to your purchase, your North Carolina real estate attorney can explain what the record shows and how it relates to your transaction. You should know what you’re agreeing to purchase and whether the title work uncovered an item that needs to be addressed before closing.

Buying property is already a major financial commitment. You’re allowed to ask what’s happening during the legal portion of your closing and expect a professional explanation you can follow.

Know What You’re Buying Before You Sign

By the time you reach closing, you’ve probably invested plenty of time, money, and energy into the property. Title work helps your attorney review the legal history behind that property before you take ownership.

Reed & Thompson assists buyers, sellers, and other real estate clients with North Carolina real estate transactions, including title and closing services. If you’re preparing to buy or sell property and want to discuss the legal side of your transaction, contact the North Carolina office at (704) 956-2723.

North Carolina Title Search FAQs

Is a title search required when buying a home in North Carolina?

Title examination is a standard part of many North Carolina real estate closings. Your closing attorney reviews the title as part of the legal work associated with transferring ownership.

What records does a title search review?

Title research may include deeds and other public records connected to ownership, liens, easements, restrictions, and recorded interests involving the property.

What happens if the title search finds a problem?

The next step depends on what the attorney finds. Some items may require a payoff, release, correction, or additional legal review before the transaction proceeds.

Is a title search the same as title insurance?

No. A title search examines the public record. Title insurance is a separate form of protection related to certain title problems. Your real estate attorney can explain how each fits into your closing.

Can I ask my attorney about something found in the title search?

Absolutely. You should know what relevant title findings say about the property you’re purchasing and whether any further action is needed before closing.