Title Search

A title search is a thorough examination of public records related to a specific property to verify ownership, identify existing liens and encumbrances, and uncover any issues that could affect the property's title. For tax lien and tax deed investors, title searches are one of the most critical components of the due diligence process.

The title search process involves reviewing records at multiple government offices, including the county recorder's office (for deeds, mortgages, and lien filings), the county court clerk's office (for judgments and lis pendens), the tax collector's office (for tax lien status), and potentially federal records (for IRS liens or bankruptcy filings). A comprehensive search traces the chain of ownership back through multiple transactions to ensure clear title.

For tax lien certificate investors, a title search helps assess the security of the investment. Knowing what other liens exist on a property helps evaluate the likelihood of redemption — properties with active mortgages are more likely to be redeemed because the lender will protect their interest. For tax deed investors, a title search reveals what encumbrances may need to be addressed after acquisition, including those that survive the tax sale.

While investors can conduct basic title searches themselves using online public records, many opt to hire professional title companies or abstractors for higher-value investments. Professional title searches are more thorough and may uncover issues that an amateur search would miss. The cost of a professional title search is typically modest compared to the potential consequences of investing in a property with undiscovered title problems.