What does a limited search indicate in a refinance transaction?

In a refinance transaction, a limited search typically indicates that an individual holds title to the property by themselves. A limited search is less comprehensive than a full title examination and is usually performed when the ownership of the property is straightforward and not encumbered by complex ownership issues or multiple co-owners.

This type of search allows the lender to verify that the person seeking the refinance is indeed the only owner of the property, which simplifies the transaction process. It is particularly relevant when there are no outstanding claims, liens, or other complicating factors tied to the property's ownership.

In contrast, a full title examination is required when there may be concerns about the title’s history, such as existing claims against the property or unclear ownership rights. If the title agent is conducting a comprehensive search, it signifies that more extensive inquiries into the property’s title history are being carried out, which is not consistent with a limited search. Similarly, if the property ownership is shared among multiple parties, a limited search would not suffice since it would complicate the refinance process and necessitate a more thorough review of ownership interests.