A deed search refers to the act of locating and examining deeds associated with a specific tract of land, residential property, commercial building, or any other real estate and the surrounding areas that belong to the property owner.
Deeds are legal documents that transfer real property ownership or convey the legal rights tied to a piece of property from one person to another. To be considered valid, deeds must be in writing and recorded in the county where the property is situated.
By conducting a deed search, one can uncover the historical ownership of a property, providing valuable insight into its past.
Why is a Deed Search Necessary?
Performing a deed search not only offers an intriguing glimpse into a property’s ownership history but also reveals any potential issues related to its ownership, which is particularly important when buying real estate.
A comprehensive deed search can expose various problems, such as:
- Uncleared liens on the property: Liens are financial claims against the property that need to be resolved before a sale can be completed.
- Ambiguous or imprecise ownership changes: Inaccurate records of previous ownership transfers can create confusion and legal disputes.
- Unpaid property taxes: Unsettled taxes can lead to penalties and might be the buyer’s responsibility once the property is purchased.
- Property encroachment concerns: When neighboring properties infringe on the boundaries of the subject property, it may lead to property encroachment disputes and require resolution.
Additional problems that can be identified through a deed search include the following:
- Easements or rights of way: These are agreements that grant others the right to use a portion of the property for specific purposes, such as access to utilities or a shared driveway.
- Restrictive covenants: These are conditions imposed on the property by a previous owner or developer, limiting its use or modifications.
- Errors or omissions in the deed: Mistakes in the legal description or other essential information can cause confusion and require correction before a sale can proceed.
- Fraudulent activity: A deed search can help identify instances of fraud, such as forged signatures or false claims of ownership.
- Inheritance issues: Unresolved disputes or claims from heirs can create complications in property ownership and transfer.
Addressing these potential issues before purchasing a property ensures that the deed accurately reflects the property’s status without any financial burdens or discrepancies.
What is the Difference Between a Deed and a Title?
A deed refers to the tangible document that transfers property ownership from the current owner to a new one. This transfer can encompass all interests in a property or only a portion of the interests.
On the other hand, a title is not necessarily a physical document; it is a concept signifying that an owner of real property possesses the rights to use and legally own the property. In essence, a deed serves as evidence of title to a property.
Where are Deeds Kept?
Typically, a recorder of deeds preserves documents such as property deeds and other real estate-related information. In some jurisdictions, the recorder of deeds is referred to as the clerk of the court. This person is generally an elected county official who operates at the local municipality level. All real estate deeds are filed and stored with the recorder of deeds within a specific county or jurisdiction, either in paper form or as scanned and saved electronic files.
How is a Deed Search Performed?
As recorded real estate deeds are considered public information, they must be accessible for search by any interested parties. The method for conducting a deed search depends on the manner in which a municipality maintains its recorded deeds. Increasingly, jurisdictions offer online real estate deed search options, while others still rely on paper documents or microfiche systems.
Who Can Perform a Deed Search?
Given that recorded real estate deeds are public records, most people can conduct a deed search. However, when the objective of the search is to verify that the deeds linked to a specific piece of real estate have a free and clear chain of title, it is advisable to engage someone experienced in carrying out such searches.
In most states, the buyer is responsible for conducting the deed search, a process known as the abstract system. Under this system, buyers often collaborate with a title company to perform the deed search.
What is the Torrens System?
Some states operate under the Torrens system, wherein a potential real estate buyer requests the recorder of deeds to conduct the search and confirm a free and clear title. In this case, the buyer receives a certificate from the recorder as proof of clear title to the property.
The Torrens system is a land registration method designed to provide greater certainty and simplicity in establishing property ownership.
Named after its creator, Sir Robert Richard Torrens, this system was first implemented in South Australia in 1858 and has since been adopted in various forms by several countries and states.
Under the Torrens system, a potential real estate buyer approaches the recorder of deeds (or the relevant land registry authority) to conduct a search and verify a clear and free title. This system relies on a centralized, government-maintained land register that records all pertinent information about a property, including ownership details, mortgages, liens, easements, and other encumbrances.
Some key features of the Torrens system include:
- Indefeasibility of title: The Torrens system grants the property owner an indefeasible title, meaning that the registered owner’s rights to the property are protected against any adverse claims, except in cases of fraud or certain statutory exceptions. This feature provides increased security and confidence in property ownership.
- Certificate of title: Upon confirmation of a clear title, the buyer receives a certificate of title from the recorder or land registry authority. This certificate serves as the primary evidence of ownership and the basis for any future transactions involving the property.
- Streamlined registration process: The Torrens system simplifies the property registration process by centralizing all relevant information in a single registry. This eliminates the need for extensive searches through historical records and minimizes the risk of errors and ambiguities that may arise in the abstract system.
- Government guarantee: In some jurisdictions, the Torrens system offers a government-backed guarantee of the accuracy of the information recorded in the land register. In cases where an individual suffers a loss due to errors or omissions in the register, they may be entitled to compensation from the government.
- Reduced reliance on external documentation: Since the land register contains all the pertinent information about a property, the need for additional documentation, such as deeds, is significantly reduced. This simplifies property transactions and reduces the risk of fraud or misrepresentation.
While the Torrens system has its advantages in terms of security, simplicity, and efficiency, it may not be available or applicable in all jurisdictions ( Eleven states use the Torrens system: Colorado, Georgia, Hawaii, Illinois, Massachusetts, Minnesota, New York, North Carolina, Ohio, Virginia, and Washington).
Should I Call a Real Estate Attorney to Help Me With My Deed Search?
Buying and selling real estate involves significant financial commitments and consequences for both the buyer and seller engaged in the transaction. Ensuring that the real estate deeds are accurate and free of potential issues is crucial to avoid future complications. A local real estate attorney, well-versed in the jurisdiction’s rules and regulations, can effectively conduct a deed search in the area where the property is situated.
Such an attorney can help you address any deed-related problems that may surface, including liens on the property, inaccurate deed details, tax discrepancies, and property encroachment issues.
Regardless of whether your jurisdiction employs the abstract system or the Torrens system for deed searches, collaborate with a skilled real estate attorney who can streamline the process without compromising the transaction’s accuracy.
