You ordered a title search. The report arrived. Now what? What happens next depends on what the search found and whether you are buying through a traditional sale or at a county auction. Either way, the title search is not the finish line. It is the starting point for your next decisions.
This guide walks you through the steps after a title search, from reviewing the results to preparing for closing. We also cover what auction buyers need to do differently with their title search results.
In this Article:
Overview of the Title Search Process
Before we cover what comes after, here is a quick recap of what just happened.
What the Searcher Did
The title searcher examined public records tied to the property. They reviewed deeds, mortgages, liens, judgments, easements, and other recorded documents. They traced the ownership history and identified any claims or encumbrances. They compiled their findings into a report and delivered it to you.
Types of Reports
If you ordered a full title search through a title company, you received a title commitment or title abstract. If you ordered a current owner search (O & E report) from a service like EasyTitleSearch.com, you received a report covering the current owner’s period, showing ownership, liens, and encumbrances for $59.
The next steps are similar for both, but the level of detail differs. A full search gives you decades of history. An O & E gives you the most relevant current information.
Reviewing the Title Search Results
The first thing you do when the report arrives is read it carefully. Here is what to focus on.
Current Ownership
Confirm who owns the property. Make sure the name on the title matches the person selling to you. If you are buying at auction, confirm the owner is the party being foreclosed on. Mismatches need investigation.
Liens and Encumbrances
List every lien and encumbrance the report shows. Note the type, amount, recording date, and lienholder for each one. This is the most critical section of the report. Liens directly affect what you pay, what you owe, and what the property is really worth to you.
Easements and Restrictions
Review any recorded easements or deed restrictions. Make sure they do not conflict with your plans for the property. A utility easement running through the middle of a lot where you planned to build is a problem. A restriction against commercial use is a problem if you planned to use the property for business.
Legal Description
Verify the legal description matches the property you intend to buy. This is especially important at auction, where properties are identified by legal description and parcel number, not street address. A mismatch could mean you are looking at the wrong property.
Red Flags to Watch For
Multiple liens from different creditors suggest the owner is in serious financial trouble. Frequent ownership transfers in a short period can signal fraud. A lis pendens (pending lawsuit notice) means there is active litigation involving the property. An IRS tax lien means the federal government has a claim. Any of these require extra investigation before you proceed.
Addressing Any Title Issues Found
If the title search reveals issues, you need to address them before closing, or factor them into your buying decision.
Issues the Seller Can Fix
In a traditional sale, many title issues are the seller’s responsibility. Unpaid liens can be paid from the seller’s proceeds at closing. Missing mortgage releases can be obtained from the lender. Recording errors can be corrected with new documents. The title company coordinates most of this work.
Issues That Require Negotiation
Some issues require negotiation between buyer and seller. If the seller does not have enough equity to pay off all liens, you might need to negotiate a reduced sale price or ask the seller to settle liens for less than face value. If a title defect cannot be fully resolved before closing, the parties might agree to an escrow holdback to cover the cost of future resolution.
Issues That Kill the Deal
Some title issues are deal-breakers. Competing ownership claims with no clear resolution. Liens that exceed the property’s value. Defects that require years of litigation to resolve. When you find these, the smartest move is to walk away. The title search saved you from making a costly mistake.
Obtaining Title Insurance
In a traditional purchase, the next step after resolving title issues is obtaining title insurance.
The Title Commitment
The title company issues a title commitment based on the search results. This document says: “We will insure this title, provided these conditions are met.” The conditions might include paying off specific liens, obtaining certain documents, or correcting recording errors. Once all conditions are met, the title company issues the actual policy at closing.
Lender’s Policy vs. Owner’s Policy
If you have a mortgage, the lender requires a lender’s policy. This protects the bank. An owner’s policy protects you. It is optional but recommended, especially for larger purchases. Both policies are issued at closing based on the title commitment.
When Title Insurance Is Not Available
At county auctions, title insurance is not part of the sale. If you want a policy after the auction, you contact a title company separately. They will run their own full search and determine if they can insure the title. For tax deed purchases, they almost always require a quiet title action first. For foreclosure purchases, the answer depends on the title condition.
For County Auction Buyers: Using Your Title Search as a Bidding Tool
If you are buying at a county foreclosure or tax deed auction, the title search report is your most important decision-making tool. Here is how to use it.
Understanding the Report
Your O & E report from EasyTitleSearch.com shows you the current owner, when they acquired the property, how they acquired it, and every recorded lien and encumbrance during their ownership period. Read every line. Each piece of information affects your bid.
Verifying the Information
Cross-check the report against public records when possible. Most counties have online record portals where you can look up specific documents. Search for the liens the report identifies. Verify the recording dates and amounts. Check the county tax collector’s website for outstanding tax amounts. If the report mentions a judgment, search the court records for the case details. This verification step builds your confidence in the numbers.
Calculating Your Maximum Bid
Here is the formula auction investors use. Start with the property’s after-repair value (ARV). Subtract your repair costs. Subtract surviving liens that you found in the title search. Subtract quiet title costs if applicable. Subtract your desired profit margin. Subtract holding and selling costs. The number you are left with is your maximum bid.
For example, you find a property with an ARV of $180,000. Repairs cost $25,000. The title search shows a $10,000 senior judgment lien that will survive the foreclosure sale. You budget $3,000 for a quiet title action. You want $30,000 in profit. Holding and selling costs are $12,000. Your maximum bid is $180,000 minus $25,000 minus $10,000 minus $3,000 minus $30,000 minus $12,000, which equals $100,000.
Without the title search, you would not know about the $10,000 surviving lien. You might bid $110,000 and lose $10,000 off your profit. Or worse, you might discover the lien after the auction and have no good options.
Deciding Which Properties to Bid On
Run a title search on every property on the auction list that meets your investment criteria. Eliminate the ones with deal-breaking title issues. Rank the remaining properties by profit potential after factoring in lien costs. Focus your energy and your money on the properties with the best numbers.
What to Do After You Win
After you win a property at auction, take these steps. Record the deed with the county if the county does not do it for you. Contact any surviving lienholders to negotiate payoffs or settlements. If you need a quiet title action, hire a real estate attorney and get the process started immediately. The sooner you clear the title, the sooner you can sell, refinance, or rent the property.
Preparing for Closing: The Final Steps
For traditional purchases, here is what happens between the title search and the closing table.
Title Issues Get Resolved
The title company works with the seller, lienholders, and attorneys to clear any issues identified in the search. You get updates as conditions are met.
Documents Get Prepared
The title company prepares the closing documents: deed, settlement statement, title insurance policies, and any other required paperwork. They coordinate with the lender to have all loan documents ready.
Final Walkthrough
You do a final walkthrough of the property to confirm its condition matches your expectations. Any problems found during the walkthrough can be addressed before closing.
Closing Day
You review and sign the documents. You bring your cash to close (certified check or wire transfer). The title company collects and distributes all funds. The deed gets recorded. You receive the keys. The deal is done.
After Closing
After closing, the title company records the deed with the county. You receive a copy of the recorded deed by mail, usually within a few weeks. Your title insurance policy arrives separately. Keep all of these documents in a safe place. You will need them if you ever sell, refinance, or file a title insurance claim.
For Auction Buyers After Closing
Your post-auction timeline looks different. You receive your deed from the county. Record it if the county did not do it for you. Start the quiet title process if needed. Begin any repairs or rehab work. Contact a title company when you are ready to sell so they can prepare for the eventual closing with your buyer. The sooner you start clearing the title, the sooner you can exit the deal profitably.
Conclusion: Finalizing Your Real Estate Purchase
The title search is the starting point, not the endpoint. What you do with the results determines the success of your purchase. Review the findings carefully. Address issues promptly. Use the information to negotiate smarter and bid with confidence.
For auction investors, the title search is your most powerful tool. It turns guesswork into math. A $59 current owner search from EasyTitleSearch.com gives you ownership history, recorded liens, and encumbrances with turnaround as fast as same day. Use it to calculate your maximum bid, eliminate bad deals, and protect your investment on every property you buy.
