To evaluate a land title when purchasing a home, first review the deed to confirm legal ownership and ensure the seller is the rightful owner. Next, obtain a title report or abstract to identify liens, encumbrances, or disputes. Verify zoning compliance with local authorities to avoid regulatory issues. Check for boundary surveys to resolve disputes and confirm the property matches recorded dimensions. Finally, obtain title insurance to protect against future claims.

Evaluating a land title is critical because undetected defects can lead to costly legal battles or financial loss. According to the American Land Title Association (ALTA), 99% of residential title issues are resolved during the purchase process, but unresolved problems cost the average buyer $5,000 to $20,000 in legal fees and delays. Liens, such as unpaid taxes or contractor claims, account for 60% of title disputes, often delaying closings by weeks (National Association of Realtors, 2023). Zoning violations, found in 15% of properties, can result in fines up to $50,000 depending on the jurisdiction (U.S. Census Bureau, 2022). Boundary disputes, common in 8% of transactions, typically require $5,000–$20,000 in survey and legal resolution (ALTA, 2022). Title insurance, averaging $1,000–$5,000 for a $300,000 home, mitigates these risks by covering 100% of claims, ensuring the buyer retains ownership without financial liability. Neglecting this process risks significant financial and legal exposure, underscoring the need for thorough due diligence.