SIC 6541 Title Abstract Offices

SIC 6541

This category covers establishments primarily engaged in searching real estate titles. This industry does not include title insurance companies, which are classified in SIC 6361: Title Insurance.

NAICS CODE(S)

541191

Title Abstract and Settlement Offices

Title examiners, also known as title abstractors, are responsible for researching, analyzing, and evaluating the legal ownership or title to real property. Whenever real estate is bought, sold, or financed, a search of title records is required to determine all persons who may have a legal claim to ownership in the property. A title search may also be required to fulfill the terms of a will in distributing property, to subdivide land into smaller parcels, or to obtain a building permit. Persons who acquire land generally want to purchase property that is free from competing claims of ownership, delinquent taxes, and other legal headaches that can devalue the investment. Even buyers who purchase land despite such potential problems generally want to be made aware of any defects in the chain of title when making a bid. Title examiners review the chain of title for a number of defects, including liens on the property, easements, rights of way, water and mineral rights, and other encumbrances. Title examiners are typically employed by title insurance companies, land development companies, and state and local governments.

The common practice of recording real estate transactions with an official recorder or registrar began in colonial Massachusetts and quickly spread across the country. Every state keeps some form of public record that identifies formally-documented property rights. In some states county governments are charged with the duty of maintaining official property records, while in other states municipal governments have been given that responsibility. But almost every locality categorizes and indexes the information in a slightly different fashion. Title abstracts are prepared to reflect these public records, often by the examiner. Title examiners then usually search the chain of title from the most recent owners to the oldest. When there is a gap in the public records, examiners must investigate further to complete the chain of title.

Additional investigation may include a search through miscellaneous public filings that could cloud title to land, including records relating to marriage, divorce, birth, adoption, and other legal...

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