To purchase a second-hand house without a property title, first verify ownership through county records or public databases. Engage a real estate attorney or title company to confirm there are no liens, disputes, or encumbrances. Use an escrow service to hold funds until the title is resolved or transferred. Consider alternative agreements like land contracts if the title remains unavailable, but ensure legal compliance. Title insurance may still be possible if the seller provides a preliminary report. Consult a real estate agent specializing in such transactions for guidance.

Purchasing a second-hand property without a title carries significant risks. In the U.S., title defects affect approximately 20% of real estate transactions, according to the American Title Association. Without a clear title, buyers may face legal challenges, ownership disputes, or financial losses if liens or encumbrances surface later. For example, a 2022 study by the National Association of Realtors found that 15% of buyers encountered unexpected title issues during purchase, costing an average of $8,500 in resolution fees. Escrow services mitigate these risks by ensuring funds are released only after title verification, which costs 0.5–1.5% of the property value. Title insurance, though optional, covers up to $500,000 in defects, with 1 in 3 policies claims filed annually, per the Insurance Information Institute. States like Texas and California mandate title reports even for properties lacking formal titles, highlighting legal requirements. Proactive verification and professional oversight reduce exposure to these risks, ensuring a secure transaction.