What Is a Title Review and How Can It Save You From Costly Mistakes

A title review is a thorough check of property records to ensure the seller truly owns the property and that there are no hidden legal or financial issues, like liens, easements, or ownership disputes, that could complicate the sale. It’s a crucial step that ensures buyers get exactly what they’re paying for and helps prevent unpleasant surprises after closing. Title reviews also help uncover historical discrepancies in ownership, making sure the chain of title is clear and valid.

Whether you’re buying, selling, or refinancing, a title review is essential. For buyers, it confirms the property’s ownership and verifies there are no unresolved claims. Sellers benefit by identifying potential issues early and addressing them before they become obstacles. Lenders also require a review during refinancing to ensure the property is legitimate collateral for a loan.

The process begins once the Purchase and Sale Agreement (PSA) is signed. A title company or attorney will examine deeds, mortgages, liens, property tax records, and easements. Depending on the property, additional documents may need review as well - such as subdivision plats, restrictive covenants, HOA bylaws, probate or divorce records, or bankruptcy filings. If problems are discovered, like an unreleased lien or outdated ownership information, the parties may need to provide extra paperwork such as lien releases, affidavits, or court orders to resolve the issue.

After this initial search, the title company prepares a preliminary title report that lists all recorded matters affecting the property. Buyers then have a chance to raise title objections within a set timeframe. These objections can involve ownership defects, outstanding debts, or third-party rights to use the property. Once objections are raised, the seller is typically responsible for curing them - by paying off liens, correcting documents, or otherwise clearing title - before closing can proceed.

The final step is the issuance of a title insurance policy, which protects both buyers and lenders against future claims or undiscovered defects. Even with a thorough review, not every risk can be identified, so this insurance provides ongoing peace of mind that ownership is legally secure.

Ultimately, a title review provides transparency, reduces the risk of disputes, and ensures the property can be transferred cleanly. Without it, transactions can face delays or even collapse. That’s why it remains a cornerstone of every successful real estate deal.