How does a buyer's title search differ from a lender's title search?

A buyer's title search is primarily concerned with verifying the ownership history of the property. This search aims to confirm that the seller has the legal right to sell the property and that there are no issues with the title that could affect the buyer’s ownership. It includes examining prior deeds, liens, and other relevant documents to ensure that ownership is clear and marketable.

In contrast, a lender's title search prioritizes identifying any encumbrances, such as mortgages, liens, or judgments that could affect the lender's secured interest in the property. The lender needs to assess whether there are any financial claims or obligations tied to the property that could jeopardize their investment.

The distinction lies in the focus of each search: the buyer's search emphasizes the legitimacy of ownership, while the lender's search is centered on ensuring that their mortgage is protected from any claims that could arise from encumbrances. This differentiation helps both parties understand the risks involved in the transaction and the status of the property title.