Page 9 - Title Insurance Explained With Closing Tips For Buyers and Sellers

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METHODS OF TITLE SEARCHES

There are various methods by which title to a parcel of real property
can be examined.

Direct Search
In some areas of the country, title companies or lawyers retained by
the customer go directly to the county records when conducting a title
search. In others, title companies maintain copies of those records in
“title plants,” which may be located right in the companies’ offices.
In some parts of the country, predominantly in the Northeast, the
counties’ records are maintained in Grantor/Grantee books that index
properties by sellers’ and buyers’ names and are laborious to search.

In some states, the county real estate records are indexed in a Tract
Index similar to a title company’s title plant. A tract index catalogs
properties by the property location, i.e., lot number, and if reliable, title
companies may use them instead of incurring the expense of building
their own title plants.

Title Examination
When the search is completed, copies of all pertinent documents,
tax searches, name searches, etc., are sent to a title officer. It is
the officer’s responsibility to examine those items and arrive at a
conclusion as to who owns the property and what encumbrances or
defects may exist. The officer also may set out certain requirements to
clear up any problems disclosed by the search and examination.

Title Plant Examination
The other method of title searching is called the Title Plant
Examination. The title examiner initiates the search from the
company’s title plant records. The plant contains a duplicate of
the “public records,” which has been reorganized and indexed in a
more useful fashion. This means that once the searcher locates the
property, the searcher has instant access to all instruments affecting
that property. This method of title search has been used in most
metropolitan areas since the advent of title insurance. It requires that
the title insurer or its agent has ownership interest in a title or
abstract plant.

Title Underwriting
At Old Republic Title, we take pride in employing various methods of
examination to resolve title defects. We often rely on the expertise of
our underwriting department when faced with a very complex exam.