The steps of a title search process are as follows:
Chain of title: Historical transfers of title to a property running from the present owner back to the original owner. In most cases this information can be obtained from public records or title plants that are privately owned and maintained by title companies. If this step is incomplete, even if the records go back 70-100 years, there is a cloud on the title. This means the present owner does not have a marketable title.
Tax search: A tax search shows the status of real estate taxes on the property and can determine if there are any assignments against the land. Unpaid taxes will create a lien against the property.
Inspection: In every case, an inspection of the property should be ordered to reveal any matters that could impact the title.
Name and judgement search: In this step, research is done to find out if there are any unsatisfied judgements against the seller or previous owners. Getting title insurance can protect against these judgements.
Closing: The lender, buyer, and seller can proceed with the closing of the property once any issues have been cleared up from the searches.