A Comprehensive Guide to Conducting a Title Search in New Hampshire

Secure Your Property Investment in the Granite State

Purchasing property in New Hampshire—whether it’s a lakeside cottage in the Lakes Region, a historic home in Portsmouth, or a mountain retreat in the White Mountains—is an exciting endeavor. However, before finalizing any real estate transaction, conducting a thorough title search is essential. This process ensures that the property is free from legal issues that could affect your ownership rights. In this guide, we’ll walk you through the steps to perform a title search in New Hampshire.

Why a Title Search is Essential in New Hampshire

A comprehensive title search helps you:

Verify Legal Ownership: Confirm that the seller has the legal right to sell the property.
Identify Liens and Encumbrances: Uncover any mortgages, tax liens, judgments, or other claims that could impact your ownership.
Discover Easements and Restrictions: Determine if others have rights to use the property or if there are limitations on its use.
Prevent Future Legal Issues: Protect yourself from disputes or claims that could arise after the purchase.

Understanding New Hampshire’s Recording System

In New Hampshire, property records are maintained at the county level by the Registry of Deeds. The state has 10 counties, each with its own registry responsible for recording property-related documents. Knowing the specific county where your property is located is crucial for accessing the correct records.

New Hampshire operates under a race-notice recording statute. This means that a subsequent purchaser who records first without notice of any prior unrecorded interests has priority. Promptly recording your deed and conducting a thorough title search are critical steps in safeguarding your ownership rights.

Steps to Conduct a Title Search in New Hampshire

1. Gather Essential Property Information

Begin by collecting key details about the property:

Legal Description: Obtain the full legal description from the current deed or the seller.
Property Address: Ensure you have the exact physical address.
Owner’s Full Name: Acquire the complete legal name(s) of the current owner(s).
Map and Lot Number: Assigned by the town or city assessor’s office, this number is essential for record searches.

2. Access the County Registry of Deeds

Locate the appropriate Registry of Deeds for the county where the property is situated:

In-Person Visits: Visit the office to access physical records and public terminals.
Online Access: Many counties offer online databases for property record searches.

Examples of County Registry Websites:

Hillsborough County: Hillsborough County Registry of Deeds
Rockingham County: Rockingham County Registry of Deeds
Merrimack County: Merrimack County Registry of Deeds

3. Search for Recorded Documents

Examine all relevant documents related to the property:

Deeds: Review current and prior deeds to establish the chain of title.
Mortgages and Discharges: Identify any outstanding loans and verify that previous ones have been released.
Liens: Look for tax liens, mechanic’s liens, judgment liens, or other encumbrances.
Easements and Restrictions: Check for any recorded easements or covenants affecting property use.
Plans and Surveys: Review details on property boundaries and subdivision plans.

4. Trace the Chain of Title

Ensure a clear chain of title by:

Reviewing Ownership History: Go back at least 50 years, as per New Hampshire’s customary practice.
Identifying Gaps: Look for any breaks or inconsistencies in ownership transfers.
Verifying Recordings: Confirm all documents were properly executed, notarized, and recorded.

5. Investigate Liens and Encumbrances

Liens can significantly impact your ownership rights:

Tax Liens: Contact the town or city tax collector’s office for unpaid property taxes.
Mortgage Liens: Ensure all previous mortgages have been discharged.
Mechanic’s Liens: Contractors may file liens for unpaid work or materials within 120 days after project completion.
Judgment Liens: Court judgments against the owner can attach to the property and typically last for six years but can be renewed.

6. Examine Easements and Restrictions

Understand any limitations on property use:

Easements: Determine if utilities, neighbors, or the public have rights to use parts of your land.
Covenants and Restrictions: Review any deed restrictions, subdivision covenants, or homeowners association (HOA) rules.
Zoning Ordinances: Check local zoning laws for permitted uses and potential restrictions.

7. Review Probate and Divorce Records

Legal proceedings can affect property ownership:

Probate Records: Verify property transfers through probate court if the property was inherited.
Divorce Decrees: Ensure property divisions are properly documented, especially if the property was jointly owned.

8. Search for Bankruptcy Filings

An owner’s bankruptcy can impact the property’s title:

Federal Bankruptcy Court Records: Search for filings in the U.S. Bankruptcy Court for the District of New Hampshire.
Understand Implications: Bankruptcy may introduce automatic stays or trustee interests affecting property transfers.

9. Check for Pending Litigation

Unresolved legal actions can pose risks:

Lis Pendens Notices: Indicate pending lawsuits involving the property and are filed with the Registry of Deeds.
Civil Court Records: Review county court records for any ongoing litigation that may affect the property.

10. Verify Property Taxes and Assessments

Ensure that all property taxes are current:

Tax Collector’s Office: Confirm payment of property taxes and check for any special assessments or liens.
Tax Exemptions: Verify if the property has any exemptions that may not transfer to a new owner.

11. Compile and Review Your Findings

After gathering all information:

Organize Documents: Keep detailed records of all findings.
Identify Issues: Note any problems that need resolution before proceeding.
Consult Professionals: Consider seeking advice from a real estate attorney or title professional for complex matters.

Challenges of Conducting a Title Search Independently

While it’s possible to perform a title search yourself, challenges include:

Complex Legal Terminology: Understanding legal documents can be difficult without expertise.
Time-Consuming Process: Manually searching records can be tedious and overwhelming.
Risk of Oversights: Missing critical information can lead to future legal issues.
Varied Town Systems: In New Hampshire, property tax and assessment records are maintained at the town or city level, adding complexity.

Simplify Your Title Search with Professional Assistance

To navigate the complexities efficiently, consider enlisting the help of experts. Professional title search services or title companies can provide:

Expert Knowledge: Professionals familiar with New Hampshire’s property laws and recording systems.
Comprehensive Reports: Detailed insights covering all aspects of the title search.
Time Savings: Quick turnaround to keep your transaction on schedule.
Peace of Mind: Assurance that all potential issues have been thoroughly investigated.

Additional Tips for New Hampshire Property Buyers

Work with Local Experts: Engage a reputable real estate agent and consider consulting a New Hampshire-licensed attorney.
Understand Property Taxes: New Hampshire relies heavily on property taxes; ensure you understand the tax implications.
Consider Title Insurance: Protect yourself against unforeseen issues with an owner’s title insurance policy.
Review HOA Documents: If applicable, examine homeowners association rules, covenants, and fees.
Inspect the Property: Conduct thorough inspections to identify any physical issues, including environmental concerns like wetlands or shoreline protection regulations.

The Importance of Title Insurance

Even with a detailed title search, unforeseen issues can arise. Title insurance provides crucial protection:

Owner’s Policy: Protects you from losses due to undiscovered title defects, liens, or encumbrances.
Lender’s Policy: Often required by mortgage lenders to protect their financial interest in the property.
One-Time Premium: Paid at closing, offering coverage for as long as you or your heirs own the property.

Conclusion

Purchasing property in New Hampshire is a significant investment, and ensuring your ownership rights are secure is vital. Conducting a comprehensive title search is a critical step in this process. While performing a title search independently is possible, utilizing professional services provides expertise and convenience, helping you avoid potential pitfalls.

By thoroughly researching and understanding the property’s history, you can proceed with confidence in your New Hampshire property purchase. Take the time to ensure all aspects of the title are clear, so you can focus on enjoying your new home in the beautiful Granite State.