Definition
A title search is an investigation of public records and other information sources to verify that the seller is the legal owner of the property and to ensure that no liens or other restrictions on the property exist.
Analysis
A title search is one of many closing costs paid at a real estate closing. A title search is required in order to ensure that the seller has ownership rights and is able to transfer the property.
A mortgage lender will require that a title search is conducted in order to protect its security interest in the property. Lenders want to make sure that there are no other claims to the property by any other lenders, government tax agencies or any other association that may have a legal claim to the property.
Something such as an undiscovered lien could become the responsibility of the new owner. For this reason, most mortgage lenders also require title insurance in case the title search misses an important detail.
