Also known as: standard title searches · title search
Written by attorneys — see sources below.
A title search that traces ownership by examining records under each grantor's name from the date the deed was executed into that grantor.
Simon Stern agrees to purchase land from Serena Soto. The title insurer performs a standard title search under Soto's name beginning at the execution date of the deed into her. Finding no unexcepted defects or liens, the insurer issues a commitment and later a policy at closing that indemnifies Stern against loss from any missed title issues.
Santiago Sanchez contracts to buy property from a surviving joint tenant after the co-tenant's death. A standard title search under the deceased tenant's name from the deed execution date shows the joint tenancy deed but no severance. The buyer proceeds knowing the surviving tenant holds unencumbered fee simple.
Raymond Johnson and plaintiff Hazel Tenhet owned a parcel of property as joint tenants. The deed was executed by Jettie N. Johnson to them as joint tenants. The property consisted of a dwelling house and lot. Its value did not exceed three thousand five hundred dollars at the time of Johnson's death in 1971. Assertedly without plaintiff's knowledge or consent, Johnson leased the property to defendant Boswell. The lease was for a period of ten years at a rental of one hundred fifty dollars per year. It included a provision granting the lessee an option to purchase. Johnson died some three months after execution of the lease. Plaintiff sought to establish her sole right to possession of the property as the surviving joint tenant. After an unsuccessful demand upon defendant to vacate the premises, plaintiff brought this action to have the lease declared invalid. The third amended complaint contained five causes of action. The trial court granted a motion to strike the fourth and fifth causes of action. It sustained demurrers to the second and third causes without leave to amend. But the court made no express ruling on the first cause of action seeking declaratory relief and damages. The trial court sustained demurrers to the complaint and entered a judgment of dismissal. Plaintiff appealed from the ensuing judgment of dismissal to the Supreme Court of California.
View caseSarah Sullivan seeks to purchase land held by a married couple as tenants by the entirety. A standard title search under each spouse's name from the acquisition deed date discloses the entireties deed and a federal tax lien against one spouse only. The buyer adjusts the purchase price to account for the lien's limited reach.
In 1988, the Internal Revenue Service assessed $482,446 in unpaid income tax liabilities against Don Craft for his failure to file federal income tax returns for the years 1979 through 1986. At that time, Don Craft and his wife, respondent Sandra L. Craft, owned a piece of real property in Grand Rapids, Michigan, as tenants by the entirety. After notice of the federal tax lien was filed, the Crafts jointly executed a quitclaim deed purporting to transfer Don Craft's interest in the property to Sandra Craft for one dollar. When Sandra Craft later attempted to sell the property, a title search revealed the lien. The IRS agreed to release the lien to allow the sale on the condition that half of the net proceeds be held in escrow pending determination of the Government's interest. Sandra Craft then brought an action in the United States District Court for the Western District of Michigan to quiet title to the escrowed proceeds. The District Court granted summary judgment to the Government. On appeal, the United States Court of Appeals for the Sixth Circuit held that the tax lien did not attach to the property under Michigan law and remanded for consideration of the Government's fraudulent conveyance claim. On remand, the District Court found that the conveyance itself was not fraudulent but that the use of nonexempt funds to pay the mortgage constituted a fraudulent act, and it awarded the IRS a share of the proceeds. The Sixth Circuit affirmed that determination on the lien issue as law of the case. The Supreme Court granted certiorari to consider whether Don Craft had a separate interest in the entireties property to which the federal tax lien attached.
View caseA standard title search examines records only under each grantor's name from the execution date of the deed into that grantor. More extensive searches may cover additional periods or indexes required by local custom or client needs.
Title passes upon delivery of the deed at execution. Beginning the search at execution captures any conveyances the grantor could have made after acquiring title but before recording.
The insurer relies on the search to identify defects or liens not excepted in the policy. A clean search allows the insurer to issue a commitment and later a policy that indemnifies the insured against loss from undisclosed title problems.
Supporting sources
…right, privilege and option to purchase the house and lot covered by this lease.... [H] If so purchased, Lessor will convey title by grant deed on the usual form subject only to easements or rights of way of record and liens or encumbrances specifically agreed to by and between Lessor and Lessee. [$] Lessor shall…