Buying or selling real estate involves more than signing a deed. Ensuring that the title to your property is clear and secure is one of the most critical steps in any transaction. Unresolved title defects can delay closings, limit financing, or even threaten ownership rights after purchase.
At North City Law, our Washington real estate title attorneys help buyers, sellers, and investors understand title reports, resolve defects, and secure title insurance protection. We review documentation, explain exceptions, and coordinate with title companies to make sure your transaction closes with confidence.
What Are Title Reports and Title Policies?
There is not a law that requires buyers to purchase a title report or title insurance, but both are often required by lenders, and both are generally strongly encouraged by most real estate professionals.
A title report is a document, often prepared by a title insurance company or title abstracting service, and primarily consists of a chronological list and review of public property records. Reviewing the title report is an important due diligence step before closing on a real estate transaction because it helps all parties identify potential title defects.
By comparison, the title policy is an insurance policy that protects the policy holder from certain kinds of title defects if those defects did not appear in the title report—Think of the policy a guaranty of the title report’s accuracy. This article focuses on what to look for in a title report as common vocabulary you may encounter.
What Should You Look for in a Title Report?
The title report is a record of a property’s ownership history, tracing previous buyers and other details impacting ownership, such as easements and encumbrances. The report will include past transactions, legal descriptions used in those transactions, recorded restrictions, easements, liens, permits, utilities, tax status, tax rates, road access, occupancy certificates, and more. The chronological series of transactions is sometimes referred to as the “chain of title.” This is a lot and can be overwhelming but here are some things to focus on:
- Any variations in legal descriptions or party names.
- Any exemptions, special tax treatments, or use exceptions that apply only to the seller and that may not be transferred to the buyer.
- Any encumbrances, such as like liens, easements, and covenants, that were not disclosed by the seller—Pay particular attention to any common interest community declarations, like for condo and homeowner associations.
- Any open permits, complaints, or code violations.
- Anything the title policy lists as an exception or exclusion.
Your real estate title lawyer can review these findings, explain their implications, and work with the title company to correct or clarify issues before closing.
How Does Title Insurance Protect Property Owners?
A title policy usually insures losses suffered because of specific causes associated with the title to a property. Some commonly insured causes are fitness for a particular use, marketability of title, errors in public records, fraudulent transactions in the chain of title, unrecorded liens or encumbrances, and legal costs to defend related disputes. Some policies will also protect policy holders against encroachments by neighbors. While some policies are for a limited period, most will remain effective for as long as the buyer continues to own the property.
What Are Common Exclusions in Title Policies?
Most title policies cover the named risks of loss only; this implies that most losses not falling explicitly under those named risks will not be covered. This is true of most types of insurance policies structured with named perils. But it is also common for title policies to include specific policy exclusions based on the title report.
If it helps, think of the title company’s title report research as its underwriting process. If the research identifies potential problems, the policy will likely include specific exclusions protecting the title insurance company from paying out in case those risks materialize. Similarly, the title insurance company may also provide a list of title objections. These are like specific exclusions; except they are so significant the title insurance company will not agree to issue the policy unless the objections are adequately addressed. For example, verification of death certificates may be required where a joint tenant died and is not signing the transaction documents.
Why Work with a Real Estate Title Attorney?
While title companies issue reports and policies, they do not represent your interests. A real estate title attorney provides independent legal guidance to:
- Interpret and explain title reports and exceptions
- Identify defects and coordinate curative action
- Negotiate endorsements or additional coverage
- Resolve ownership disputes and clouded title issues
- Review settlement statements and closing documentation
Having legal counsel ensures you understand what you’re signing—and that your title protection truly matches your transaction goals.
Work with a Washington Title Lawyer You Can Trust
A clean title is the foundation of every real estate transaction. At North City Law, our title lawyers provide experienced guidance to ensure your purchase or sale is properly protected. From reviewing reports to addressing liens, we help clients close confidently and protect their long-term property interests.
Contact North City Law today to schedule a consultation with a Washington real estate title attorney and ensure your transaction is backed by clear, insurable title.