Table of Contents
By LandyDandy
When you buy land, you are buying the seller's title, meaning their legal ownership. The deed is the document that transfers it. A title search and title insurance tell you whether that ownership is clean and protect you if it is not.
General information, not legal, tax or financial advice. Rules differ by state and county and change over time. LandyDandy is a land marketplace, not a law firm, lender or title company. Each seller on LandyDandy sets their own terms. Before you sign or pay anything, check with the county and a licensed real estate attorney or title company in the state where the land is.
The short answer
- A warranty deed comes with the seller's promise of clear title. [S5] A quitclaim deed comes with no promise that the title is good. [S4]
- A title search looks for liens, unpaid taxes, other owners and recorded restrictions.
- Owner's title insurance protects you if someone later claims an interest that existed before you bought. [S8]
- One land consultancy puts a title search at $150–$500 and owner's title insurance at about 0.5%–1% of the price. [S9]
- Record your deed with the county right after closing.
Types of deeds
General warranty deed. The seller guarantees clear title to the property. [S5] If a hidden claim turns up, the seller has promised to stand behind the title.
Special warranty deed. In some states, the seller only promises that nothing went wrong with the title while they owned it. Names and exact meaning vary by state. Ask a local attorney.
Quitclaim deed. The seller transfers whatever interest they have, if any, without promising the title is good. [S4] If the seller owned nothing, you get nothing. You may see quitclaim deeds between family members and in some low-cost land sales.
A deed is only as good as the seller's ownership. Even a warranty deed is just a promise. If the seller has no money or cannot be found, the promise may be hard to collect on. That is where a title search and title insurance come in.
Title search, title commitment and title insurance
Title search. A title company or attorney reviews county records for the parcel. They look for:
- Who owns it now, and whether all owners are signing.
- Mortgages, liens and judgments.
- Unpaid property taxes. (See our property taxes guide.)
- Recorded easements and deed restrictions.
- Breaks or errors in the chain of past owners.
Title commitment. If you buy title insurance, the title company usually gives you a commitment or report before closing. It says what it plans to insure, what must be fixed first, and what it will not cover. Read the list of exceptions closely. Easements and restrictions often show up there.
Owner's title insurance. This policy protects you if someone sues and says they have a claim against the property from before you bought it. [S8] It is different from a lender's policy, which protects the amount the lender lent. [S8] Owner-financed land usually has no bank lender, so there is often no lender's policy. Owner's coverage is usually your choice.
One land consultancy lists typical costs as $150–$500 for a title search and usually 0.5%–1% of the purchase price for owner's title insurance. Local fees vary. [S9]
Why some cheap lots close without title insurance
Some low-cost rural lots sell without a title company. The seller may use a quitclaim deed or prepare the deed themselves. Reasons can include:
- On a very cheap lot, title costs can be a large share of the price.
- Some lots were bought at tax sales. A title company may want extra steps before it will insure them.
- Some sellers sell many lots and keep closing costs low.
The trade-off is risk. Without a search, you may not learn about a lien, a missing co-owner, unpaid taxes or a restriction until later. Land fraud also targets vacant lots. See our guide to land scams.
You can still protect yourself without a full policy. At minimum, check the county records yourself: the current owner name, the tax status, and any recorded liens. Or pay for a title search alone. Ask the seller if they will share the cost, or if they already have a title report.
Recording your deed
After closing, record the deed with the county recorder or register of deeds. Recording puts your ownership in the public record. An unrecorded deed can leave you open to problems with a later buyer or creditor.
Check that:
- The legal description on the deed matches the parcel. (See how to read a plat and survey.)
- Your name is spelled correctly.
- The deed is signed and notarized as your state requires.
- You get a recorded copy back.
Then confirm the county tax records show you as owner, so tax bills reach you.
If you buy on a contract for deed
With a contract for deed, the seller keeps the deed until you make all payments. [S1] The CFPB warns that a seller may not have clear title, may collect money for taxes and not pay them, and often tries to start eviction right away after missed payments. [S1]
Protect yourself:
- Get a title search before you sign, not at the end.
- Ask an attorney whether you can record the contract, or a short memorandum of it, so the public record shows your interest.
- Check every year that property taxes are paid.
- Make sure the contract says when and how you get the deed.
Read more in our owner financing guide.
Where to close
You can close through a title company or a real estate attorney you choose. They handle the deed, recording and, if you want it, title insurance. Rules on who may handle a closing vary by state. Choose them yourself; do not rely only on contacts the seller gives you.
Is title work worth it on a cheap lot?
Compare the cost of title work to what you could lose. For example, on a $3,000 lot, a few hundred dollars for title work is a real share of the price. But losing the whole lot to a hidden claim, or to a fake seller, costs more. At the very least, consider a title search and confirm the owner before paying anything.
People sometimes ask about "allodial title" as a way to own land free of all claims. It is not a practical option for most buyers. See our allodial title article.
Frequently asked questions
What is the difference between a warranty deed and a quitclaim deed?
A warranty deed comes with the seller's guarantee of clear title. A quitclaim deed transfers whatever interest the seller has, if any, with no promise that the title is good. A quitclaim gives the buyer much less protection.
Do I need title insurance to buy owner-financed land?
Usually it is not required, because there is often no bank lender. Owner's title insurance is optional, but it protects you if someone claims an interest in the land from before you bought it. At least consider a title search.
How much does a title search cost for vacant land?
One land consultancy puts a typical title search at $150 to $500. Prices vary by county and by how complex the records are. Ask a local title company for a quote.
What should I do right after I get the deed?
Record it with the county recorder or register of deeds. Check that the legal description and your name are correct. Then make sure the county tax records list you as the owner.
Can I record a contract for deed?
In some places a buyer can record the contract or a memorandum of it, but rules vary. Ask a local real estate attorney. Recording shows the public that you have an interest in the land.
Next steps on LandyDandy
LandyDandy is a marketplace. Each seller sets their own terms and closing process. Ask the seller what deed they will give, who handles closing, and whether they have a title report. Then browse owner-financed land or all land for sale.
Title rules differ by state. Before you sign or pay, talk to a local real estate attorney or title company, and check the county records.
Sources
- [S1] CFPB — What is a contract for deed? — https://www.consumerfinance.gov/ask-cfpb/what-is-a-contract-for-deed-en-2149/ — seller keeps the deed until the contract is fulfilled; may lack clear title; may not pay taxes collected; often starts eviction right away
- [S4] Cornell LII — Quitclaim deed — https://www.law.cornell.edu/wex/quitclaim_deed — conveys present interest, if any, "without representing, covenanting, or warranting that the title is good"
- [S5] Cornell LII — Warranty deed — https://www.law.cornell.edu/wex/warranty_deed — "the grantor (seller) guarantees clear title to the property"
- [S8] CFPB — What is owner's title insurance? — https://www.consumerfinance.gov/ask-cfpb/what-is-owners-title-insurance-en-164/ — owner's policy vs lender's policy (protects the amount lent)
- [S9] Landisle Consulting — Land due diligence (2026) — https://landisleconsulting.com/land-due-diligence — title search $150–$500; owner's title insurance usually 0.5%–1% of purchase price
Internal links to make (build note, not page copy)
- From this guide → "property taxes guide" → /property-taxes-tax-delinquent-land (guide 06; ships with the set)
- From this guide → "guide to land scams" → /land-scams-wire-fraud-fake-sellers (guide 12; 404 until the set ships)
- From this guide → "how to read a plat and survey" → /how-to-read-a-plat-survey-property-lines (guide 05; ships with the set)
- From this guide → "owner financing guide" → /how-does-owner-financing-work-for-vacant-land (200; being rewritten as guide 01)
- From this guide → "allodial title article" → /how-to-get-allodial-title (200)
- From this guide → /owner-financing-land, /united-states (200)
- To this guide ← /how-to-get-allodial-title ("title insurance and deeds for land you can actually own")
- To this guide ← /land-due-diligence-checklist (title section)