A limited title search is a streamlined review of a property’s recent legal records, concentrating only on the current owner’s period of ownership. This contrasts with a full title search, which traces ownership and related legal matters back decades to uncover any past issues that could affect the property’s title.
How Does a Limited Title Search Work?
When undergoing transactions like refinancing or applying for a home equity line of credit (HELOC), lenders often require a limited title search. This search checks for new mortgages, liens (such as contractor or tax liens), unpaid property taxes, and judgments against the current owner that could affect the lender’s interest.
Unlike a full title search, it does not investigate previous owners’ records or longer historical issues. This makes the process faster, usually completed within 1 to 3 days, and less expensive, typically costing between $75 and $250.
When Is a Limited Title Search Used?
Limited title searches are common in lower-risk real estate scenarios including:
- Mortgage refinancing: Ensures no new liens or claims have arisen since the original purchase.
- Home equity loans or HELOCs: Confirms the property is free from recent legal claims that could jeopardize the lender.
- Foreclosure or tax sale auctions: Helps investors quickly assess the property’s current financial encumbrances.
For these purposes, a limited title search gives enough information to proceed without the time and cost of a full search.
Limited Title Search vs. Full Title Search
The key difference lies in scope and purpose:
| Feature | Limited Title Search | Full Title Search |
|---|---|---|
| Scope | Only current owner’s records | Complete ownership chain, often 40-60 years back |
| Purpose | Low-risk transactions (refinance, HELOC) | High-risk transactions (home purchase) |
| Checks for | Recent liens, judgments, taxes on current owner | All liens, easements, boundary disputes, claims |
| Cost | $75–$250 | $300–$1,000+ |
| Time to Complete | 1–3 days | 1–2 weeks |
| Protection | Protects lender on recent transactions | Protects buyer from historical title defects |
Attempting to buy a home with only a limited title search is risky because hidden claims or defects from previous ownership periods remain undetected. Always obtain a full title search and consider owner’s title insurance when purchasing property to safeguard your investment. For more details, see our article on Title Insurance.
FAQs
Who performs a limited title search?
Usually, a title company or a real estate attorney conducts the search by reviewing public records and documented liens.
Does it include title insurance?
A limited title search may be part of securing a lender’s title insurance, which protects the lender’s interest, but it does not provide the comprehensive protection of an owner’s title insurance policy.
What happens if a problem appears?
Liens or judgments discovered must be resolved before the transaction proceeds, such as paying off unpaid contractor liens or delinquent taxes.
Sources:
- First American Title: What is a Limited Title Search?
- Old Republic Title: Title Searches Explained
- Investopedia: Title Search (Accessed 2025)
For more on refinancing, visit our glossary page on Mortgage Refinance.
