You found a home you love, the seller accepted your offer and now the closing process begins. Before the keys change hands, one step can decide whether the deal moves forward: the title search. If a problem appears in the property’s history, such as an unpaid lien, a missing document or an unknown easement, it can delay or derail the purchase. Knowing what a title search covers helps you move forward with confidence.
What a title search looks for
A title search reviews public records tied to a property. It traces ownership and looks for issues that could affect your rights as the new owner. Common problems include:
- Unpaid property taxes
- Outstanding mortgages that were never released
- Mechanic’s liens from unpaid contractors
- Easements that give others access to part of the land
- Court judgments against a current or prior owner
Any of these can complicate a real estate closing if you do not resolve them in time. Even older problems can follow a property, which is why the search often goes back through several owners.
How Minnesota’s two title systems work
The way the county records ownership affects how the search works. Minnesota uses two systems:
- Abstract System: Relies on a record of all documents tied to the property.
- Torrens system: Uses a certificate of title that combines ownership into one document.
The system depends on how the property was first registered. Abstract properties require a deeper review of past records, which can take more time. Torrens properties offer a simpler process, but you still need to check the certificate for liens or easements.
Why title insurance protects your investment
Even a careful title search may miss some problems. A forged deed, an unknown heir or a recording error can surface after closing. Title insurance protects you if a covered issue appears later. Most lenders require a lender’s policy. An owner’s policy is optional but protects your equity. Since your home may be your largest asset, this added protection is worth considering.
What to do when a title problem surfaces
When a title search finds a problem, the parties must resolve it before closing can move forward. Fixing the issue may involve clearing a lien, securing a missing document or resolving a boundary dispute. The sooner you understand the issue, the faster you can fix it. Asking questions early and reviewing the title report carefully can help you avoid delays and last-minute surprises.
