Title Search

Title search is a systematic examination of public records — deeds, mortgages, assignments, court judgments, tax liens, and other recorded instruments — to establish current ownership of a property, identify all encumbrances against it, and confirm that the title can be legally transferred. Title searches are conducted by title companies, abstractors, or attorneys who review records at the county recorder's office or through online public records databases.

For mortgage note investors, the title search is one of the most important steps in due diligence. It answers threshold questions that determine whether a deal is viable: Does the borrower still own the property? Is the lien still attached? What is the lien position? Are there competing claims, clouds on title, or breaks in the chain of title? Note investors typically use a tiered approach — performing free county records searches during initial screening, ordering O&E (Ownership and Encumbrance) reports during bid-level due diligence, and obtaining full title searches with title insurance for high-value acquisitions or REO dispositions. A clean title search confirms the loan is properly secured; a problematic one flags risks that must be priced into the bid or resolved before closing.