How To Run Title Search

Question

I’m currently buying an off market property. I’m paying cash so I thought this would be a quick transaction. It’s taken 4 weeks to run title and now that title has come back it turns out the ex wife is on title and we have to figure out how to contact her.

On another deal I did (didn’t end up going through) when title came back it showed a 17k tax lien against he property and it stopped the deal.

I’ve been relying on wholesalers to bring me deals and title doesn’t happen until it gets to the attorneys office. I’d like to know how I can run title in house so I can expedite the process and avoid unwanted surprises.

Anybody have experience in this area? I’m based in NC if that’s an important factor.

Thank you!

Tom Gimer · Answer

Learn to search relevant public records online before contracting.

Tax assessor should show all current owner(s), so you can make sure you are contracting with all interested parties in advance as well as the parcels conveying.

Land records will include the current vesting deed which will definitively show who owns the property, as well as mortgages and other recorded liens.

Judgments should be searched back with all names of record for the required period (lien expiration).

The manner in which property is held (tenancy in common vs. joint, etc.) is also crucial to understand, so that you know whose signatures on the contract are essential. The need to open an estate come up frequently.

On the investor side, I'd say 15%+ of the contracts we receive to open escrow are legally unenforceable due to an unauthorized party signing or one or more owners not signing. Great deals can slip away due to carelessness.

Scott Wolf · Answer

@Tucker Cummings, most title firms can run searches and charge you a fee.  As @Pat L. mentioned, if you purchase enough of them and use them for title, the fees can usually be waived as a business relationship is formed.

Pat L. · Answer

We had a guy on speed dial & he could do a quick title search for us on the fly. Enabled us to make some great deals. Unfortunately he died lung cancer 52 yrs old, heavy smoker & stress. So we are now looking for someone else as the title co our attorney uses is useless !!! Some attorneys create their own title work companies & charge the client a lot for a search.

Before Covid a bevy of title search guys hung out on assigned desks at the clerks office amongst all the title book stacks. So once is over we'll go back & see if we can hook up with another.

Kenia Tatum · Answer

@Tucker Cummings

Tryeasytitlesearch.com a nation wide service under$8”

Tom Gimer · Answer

@Tucker Cummings No problem. Yes, I've been doing this a long time. For liability protection purposes, we farm out our title searches to abstractors... but we could easily do them in-house and do provide quick (same day) O&E reports to investors for this very purpose. I gave an overview... you may or may not have access to everything online like we do but most jurisdictions do have court and Land Records portals on the web... some are behind a paywall. Good luck.

Peter Walther · Answer

Searching title is challenging and every county in every state has it's own idiosyncrasies in how documents are identified and posted.  You can learn the theory easy enough, but you need actual experience to do it well.  Many underwriters are now trying to perfect searching using algorithms with minimal human input.  If you're interested, here's a link to a decision on a case I handled in NC that demonstrates the results of one such idiosyncrasy.  SUNTRUST BANK, N.A. v. NO | 433 B.R. 532 (2010) | 20100809583 | Leagle.com

At least as important as searching title in my opinion, is examining the documents you find determine their possible affect on the title.  I've seen experience examiners miss the fact a Grantor reserved a life estate.  Then a title claim arises when the Grantee in that deed purports to convey fee title to a purchaser and someone realizes the insured only has the remainderman interest the seller had.

Steve Morris · Answer

Don't know NC, but in OR we usually use escrow to close.

Since they're issuing the title insurance they can pull a PTR (like in 2-3 days).  Then they can tell you what gets removed/survives closing.

As far as closing and the ex-wife, ask title or your atty.  Easiest/quickest is if she is willing to sign a quitclaim (in OR).  If not, then it gets more complicated dependent on the animosity of the spouses.

Pat L. · Answer

In the event we do in fact buy the property yes we pay for a search & title examination. The guy I used prior to buying a property would run the search gratis as we used him a lot for all our title work so he would do it as a favor. Now we need to find another adept title guy. He saved us a LOT of time & we were able to pounce on some great deals esp., vacant properties held by OOS heirs who didn't know what to do with it.

as an aside...We are going through hoops now on title companies NOT understanding how title is legally recorded for a property bought, held, then sold within a 401(k)-solo. A simple google search would straighten these people out BUT they are just not understanding it. So far 2 title companies have held up the close for 3 months & we still can't close on it & have the new owner get title insurance. Insane...

Tucker Cummings · Answer

@Tom Gimer

Thanks for the breakdown. It sounds like this is something you have a lot of experience with. Where did you learn to do this? And is all this kind of information available at my county courthouse or would I have to go somewhere else?

Tucker Cummings · Answer

@Pat L.

So are you saying you paid for a service to run title for you?

Once you get clear title, do you just forward documentation to your closing attorney? Or are there more steps involved?

How To Run Title Search

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