Question about a title search..

[GoatsRus]

First off let me say I'm having a title search done and understand the need.

Now here's my question: If the property was sold 10 years ago and a title search (back 30 years) was done at that time and I use the same title company, do they have to go back 30 years again or can they just use the old title search and do the subsequent 10 years?

[geo in mi]

I'm not any expert, but I think that the last ten years should do it--providing you go to the same title, or abstract company for the update. The abstract is the certified copy of all the transactions, deeds, mortgages, and paid taxes that took place in the history of the property in question. The trouble is in finding it nowadays. Title insurance companies have clouded the issue of the old way of bringing an 'abstract up to date'. They do that, and then they sell the buyer an insurance policy that they will defend it against all claims for as long as the buyer owns it. Well....they have to 'bring the abstract up to date' or in other words, do a title search, to guarantee that.... But where do they keep the copy for anyone else to see? If you have the copy of your abstract, I think you should be in the clear by getting the past ten years updated....(But I won't go to court with you, I'm not a lawyer...)

[MN Gardener]

You need title insurance (an Owner's policy, not just a lenders policy), not a just title search. A title search, a judgement search and other searches will be done. A title search means nothing if you don't have an Owner's title insurance policy to back it. Same goes for an abstract, you can have an abstract and it can be up to date but if no one exams it and issues a policy it means nothing. I always insist on an updated abstract (assuming the property is abstract) and an owner policy when I do a real estate transaction. I have worked for title companies in the past and will ALWAYS get an owner's policy from now on. People make mistakes and it is nice knowing I will be covered if something falls through the cracks. Do a search on this website for title policy and you will find some really good threads on this subject.

[Wolf mom]

Beware, they still can be wrong. My neighbor is suing her title comapny and the former owner over a deeded access across her property that was not disclosed.

Part of the issue is in the title insurance. There's a tiny one sentence that states if they screw up, they're not responsible. (my words) Moral of the story: Read, read, read every word!

But then, the county records where I live are really messed up. Taxing house, barn & land as raw land, etc.

[agmantoo]

Title insurance companies depend on "others" to do their research. They accept at face value the findings. Attorneys or their assignees make the mistakes and attorneys have Error and Omission Insurance. One of the two, the attorney or the title company are responsible when errors occur. If you want to observe an attorney change his approach to solving an issue ask for the name of his insurance comany! Most folks try to recover off the wrong party.

[GoatsRus]

OK, I went back through the older posts as MN gardner suggested, but I still don't have an answer to my question.

First off remember, I AM purchasing title insurance/title policy. We said we'd pay for the survey and policy. This is property that is vacant and adjoins our property. All of these pieces were sold some time around 1997. The neighbor has 2 plots. He'll sell us part of the plot that adjoins us. We don't want anyone to build close to our original lot line. The title search will cost $450.

All I want to know is since they already did title searches back in 1997 when this farm was divided and auctioned off, wouldn't it be cheaper and feasible for the same title company to pull the original title search from 1997 and go from there?

[agmantoo]

GoatsRus
If you know the attorney that did the initial research and contact him it would/should be cheaper. It will also be cheaper if you buy the title insurance directly from a title insurance company as compared to a lending institution. My last two title insurance purchases, one last week, were in the $175 range.

This is the company that I usually go to
http://oldrepublictitle.iarbiz.com/Jq_N3jjWjvA=

[GoatsRus]

Thanks Agmantoo. My DH did go to the original title company and they quoted $450, which I thought was steep since they had already done a search in 1997. I'll take a look at your attachment.

[7thswan]

That's probably what they will do. But don't expect them to give you any break in the price.

[7thswan]

If you are doing your own sale you can garentee a clear title and purchase ins. for that. Make the Buyer purchase their own Title Ins. if their Mortgage co. demands it. These things are negotiable.

[MN Gardener]

Are you sure the $450 isn't including the title insurance? I would call back and double check that figure and remind them that they should have a 10 year old title search and you do not understand why it cost so much. Then I would call another title co and see what they charge. Who knows, maybe that is the going rate in the area that you are in. Is this an attorney's office or title co? Sometimes attorney's charge more. What is the purchase price of the property?

[longshadowfarms]

That is pretty steep unless it includes the insurance or if you're in a seriously high priced area of the country. We just sold property and only had 2 of 3 abstracts, going back 25 yrs, a couple of transactions in there, in NY - an expensive state. That was $350. That said, we actually did have the abstracts for 2 of the pieces.

[goatlady]

That $450 DOES include the title insurance which is based on the title search. By law an appraisal and a title search are only valid for 12 months as valid legal documents. So a 1997 search is NOT valid in a court of law and IF the title company based the NEW policy and search sole on the 1997 documents they would be in a world of hurt legally.