Practical Law Glossary Item 4-501-7606 (Approx. 3 pages)
Glossary
Title Search
An examination of title records performed as part of the due diligence for a transaction involving real estate. The title search is designed to ensure that the true owner of the parcel in real estate in question is:
For a purchase and sale transaction, the seller.
For a loan financing secured by a parcel of real estate, the borrower, or guarantor that is granting the lender a lien on the parcel as collateral for its loan obligations.
The title search is also intended to determine whether there are any third parties that have pre-existing liens or other claims to the parcel.
For information on title insurance policies, which a purchaser or lender can obtain to insure the validity and priority of its interest in the parcel based on the title search results, see Practice Notes: