A title search is performed to investigate past transfers of title and claims on a property. If there is an issue, it typically shows up here. However, title insurance is issued for the rare chance it does not. You might think we live in a day where all claims on land titles have been resolved, but unfortunately this is not the case. They are however few and far between.
Do not be worried. This is what title insurance is for. It protects you and the lender against these types of claims. If there ever was a dispute of title, the title insurance would kick in and pay for damages. Also, the chances of a claimant obtaining a judgment to move you off of your property are almost unheard of. Almost all real estate transactions require a title search and title insurance (99.9% that have a mortgage).
Title search and insurance rate do vary somewhat by county. You should expect to pay $350-$750 depending on the complexity of the title search. Title insurance should be .05% to .07% of the purchase price ($500-$700 per $100,000).
If you have title questions or would like a free preliminary report for a property, please contact us.