Property Title Search Guide for Commercial Buyers and Investors

A property title search is the process of reviewing public records to confirm who owns a property and whether there are any claims or legal issues tied to it. It's a standard step in any real estate transaction, but for commercial investors, it's also a risk management tool.

When you're buying a property, you're not just buying the building or the land, you're buying the rights attached to it. If there's a problem with the title, like an old lien or a missing deed transfer, you could inherit someone else's legal mess. And that mess can block financing, delay closing, or even kill your deal.

Titles represent a bundle of property rights, not just a document.

The title isn't a single piece of paper. It's a legal concept that includes a bundle of rights: ownership, control, use, exclusion, and disposition.

Think of it this way: if you own a warehouse, your title gives you the right to lease it, improve it, refinance it, or sell it. If that title has issues, say a recorded easement allowing someone else access through your loading dock, you lose part of that control. And if there's a break in the chain of title, your legal claim to the entire property can come into question.

That's why lenders require title insurance, and why experienced buyers never skip a professional title search.

What a comprehensive title search includes

A full title search looks at a range of public records, typically going back several decades. Here's what's typically included and why each item matters:

Some searches also flag zoning conflicts, boundary disputes, or missing probate documents, especially on older properties or those held in family trusts.

Even one small error can cause major issues later

We've seen investors lose six figures because a previous owner had unpaid property taxes that went unnoticed. The county doesn't care who owns it now, they'll enforce the lien.

In another deal, a title search revealed that a land parcel had been split years earlier but never recorded properly. The buyer thought they were getting parking rights. Legally, they weren't.

You can't "fix" these problems after closing without legal costs, or walking away.

Why investors should take title searches seriously

A clean title supports marketability and resale. A dirty title can tie up your capital and kill your exit strategy.

If you're flipping a property or using seller financing through a land trust or LLC, don't assume the paperwork was done right just because it closed. Even recorded deeds can have errors, wrong legal descriptions, missing signatures, or filing issues. Every one of those is a red flag.

Should I do the Title Search Myself, or Hire a Professional?

You can do a title search on your own, but there are real risks if you miss something.

Yes, you can conduct a property title search yourself by accessing public records online or visiting the county recorder's office. It's free if you have the time and know what to look for. That's why some investors run preliminary searches early in the due diligence phase, to screen out bad deals before spending money.

But there's a big difference between a casual record search and a comprehensive legal review. Most lenders and insurance providers won't accept a DIY title search. They require a certified report from a licensed title company or real estate attorney.

When to do it yourself

If you're exploring off-market deals, seller financed properties, or tax auctions, a quick search can help you spot obvious red flags. Start with the parcel number, then check for unpaid taxes, missing deeds, or prior ownership transfers that don't add up.

This approach works best during the early evaluation stage, before you're under contract or paying for appraisals and inspections. But it's only the first filter.

When to hire a pro

For any deal you intend to close, especially if you're financing, hire a professional. Title companies have access to tools, historical documents, and legal expertise that most individuals don't. They also carry liability insurance in case something gets missed.

Expect to pay around $75-$200 for a standard title search, depending on the county and complexity. It's a small price to avoid inheriting someone else's lawsuit or tax lien.

And remember, title insurance can't be issued without a professional search. If you're serious about protecting your investment, you need both.

What Steps are Involved in a Property Title Search?

A complete title search follows a clear sequence, miss a step and you risk buying someone else's problem.

A property title search isn't just digging through old deeds. It's a systematic process to verify ownership, uncover encumbrances, and make sure your deal doesn't fall apart later. Below is a tactical breakdown of each step, what to gather, where to search, and what to look for.

1. Gather property details

Whether you're evaluating a standalone parcel or a larger tract of land for sale, start by collecting the legal description, parcel ID, and full address. This information helps you locate the correct public records. If you're looking at a portfolio with multiple parcels, pull this data for each one individually.

2. Locate public records

The primary source for property documents is the county recorder's office. This is where you'll find deeds, mortgages, and commercial liens. Some counties offer online databases. Others still require in person visits or remote requests by mail.

3. Establish the chain of title

Trace every ownership transfer from the current owner back to the original grantor. You're looking for an unbroken line. Each transfer should be properly recorded and supported by the correct type of deed, such as a special warranty deed or trustee's deed.

Watch for gaps in the record or unexplained name changes. Those often signal problems that could require legal resolution.

4. Search for encumbrances

Look for anything that limits or clouds ownership. This includes:

• Liens: Mortgages, tax debts, mechanic's liens, or unpaid utility bills.
• Easements: Recorded rights of way or access granted to others.
• Other restrictions: Deed restrictions, HOA covenants, or environmental use limitations.

If you find liens, check whether they've been released. Many investors assume a paid-off debt disappears, it doesn't unless it's officially discharged and recorded.

5. Analyze all documents

Before you finalize an offer on any commercial real estate for sale, verify that legal descriptions, signatures, and dates align across all documents. Compare against tax records, zoning maps, and your purchase contract. Don't assume that just because a document is on file, it's correct.

If the deal is complex, bring in a title company or real estate attorney. They can flag hidden risks or discrepancies you might miss.

6. Address any issues before closing

If the search reveals defects, don't panic, but don't ignore them either. Work with the seller to clear title before you proceed. That might mean paying off debts, securing a lien release, or renegotiating the purchase terms.

In some cases, you may walk away. But in others, a fix is worth the effort if the property meets your investment criteria.

7. Obtain title insurance

If you're purchasing a multifamily property, title insurance protects you from legacy claims or paperwork errors, especially in older buildings with long ownership histories.Once the title is clear, your title company can issue a policy. Title insurance protects you and your lender against future claims, errors in the record, fraud, or overlooked encumbrances.

Lenders typically require it. But even if you're using cash, it's worth the peace of mind.

Bonus Tip: Search by grantor/grantee and entity name

When doing a preliminary search, don't just rely on the property address. Search using the current owner's name, previous owner's name, and any known LLCs or trusts. Some properties were held under different entities in past transactions, and you don't want to miss a lien or lawsuit just because it wasn't tied to the current parcel.

Also, if the deed is a quitclaim deed, that's a red flag. It offers no title protection and is common in distressed or informal transfers.

What are the Most Common Title Issues, and How do You Fix Them?

Title defects can sink your deal or haunt you after closing. Know what to watch for and how to respond.

Most title problems aren't obvious at first glance. They hide in old filings, missing signatures, or liens that were never cleared. And they don't just delay closing, they can strip you of ownership rights or lead to costly lawsuits down the road.

Types of common title defects

Title issues fall into two buckets: administrative and legal.

• Clerical errors: Typos in names, wrong parcel numbers, or missing pages in recorded documents.
• Ownership disputes: Gaps in the chain of title, conflicting deeds, or undisclosed heirs in past transfers.
• Unreleased liens: Debts paid off long ago but still attached to the title because no one filed the release.
• Unrecorded easements: Long-standing use agreements that don't show up in official records but still bind the new owner.

How to resolve title problems before closing

Once an issue is discovered, work with the seller first. In many cases, the seller can resolve it by paying off debts or re-recording documents. If that fails, you may need to bring in a title company or real estate attorney.

Some investors use tools like a grant deed to confirm proper title transfer after a correction. In more complex cases, you might need to file a quiet title action, a court process to establish rightful ownership when there's a dispute or missing record.

Should you walk away?

If the seller can't fix the issue, and the title remains clouded, don't try to force the deal. Especially in distressed property scenarios, some titles are too messy to be worth the risk. Knowing how to find distressed property is valuable, but only if you're disciplined enough to walk when the numbers stop making sense.

How do ownership structures like LLCs or trusts affect a title search?

Entity-owned properties require deeper digging, miss a document and the deal could collapse at closing.

When a property is owned by an LLC, corporation, or trust, the title search gets more complicated. You're not just verifying ownership, you're verifying that the entity exists, is in good standing, and that whoever signed the paperwork had the legal authority to do so.

What you need to look for

Start by confirming the entity's formation documents and active status with the Secretary of State. Then check for operating agreements, trustee declarations, or board resolutions, something that proves the signer was allowed to sell the property.

Common red flags

• Entities dissolved before the transaction date
• Title transfers with no proof of signatory authority
• Unrecorded changes in membership or trust beneficiaries

It's not just about due diligence, it's about deal security

Entity issues don't always show up in the public title record. But they can invalidate a sale if challenged. If you're dealing with shared ownership, like a tenancy in common, or land with long term control via a ground lease, expect more documents and more scrutiny.

This is where many DIY searches fall short. If you're buying from an entity, get professional support. You're not just buying the real estat, you're buying the right to claim it cleanly and legally.

How Should You Use Title Search Results to Guide Your Investment?

Title findings can make or break the deal, use them to protect your position.

Don't treat the title report as a formality. Use it to confirm the deal supports your business plan. If you find active liens, easements, or missing ownership links, reevaluate your assumptions fast.

Update your underwriting

Adjust for legal costs, hold delays, or reduced usability. If a recorded easement limits site access, or a lien clouds ownership, update your offer, or walk. The title must support your planned highest and best use.

Decide to proceed, renegotiate, or exit

If the issue is minor, require the seller to resolve it. If it's structural, like a long-term use restriction, you may need to walk. Your capital is better deployed in deals with clean title and clear upside.

If you're evaluating properties right now, these nearby listings can help you apply what you've learned about title search risks in real time.

Frequently Asked Questions

How can I verify if a property has unrecorded easements or restrictions?

Start with a physical inspection, look for shared driveways, utility boxes, or footpaths that suggest regular use. Ask the seller directly and request an Affidavit of Title. For added protection, speak with neighbors or order a survey to uncover any unwritten agreements or access points that could bind the property.

Should I do my own title search or hire a professional?

Do your own preliminary search during early due diligence to catch obvious red flags, but always hire a professional before closing. Only certified title companies or attorneys can issue the reports needed for financing or insurance, and their expertise protects you from costly legal oversights.

How do title searches work for properties owned by LLCs or trusts?

You'll need to verify the entity's active status, confirm who has signing authority, and ensure the ownership structure hasn't changed without being recorded. Missing or outdated documents in these cases can cloud title and delay or void the sale.

What title insurance endorsements should I consider as a commercial investor?

Key endorsements include zoning, access, contiguity, survey, tax parcel, and environmental lien coverage. Choose based on your property's use, location, and planned improvements, each one addresses a risk not covered by standard title insurance and can protect your investment long term.