What Is Title Search in Home Buying

A property title search—colloquially called "pulling the title report"—determines whether you can actually obtain ownership of a property.

When conducting a title search, buyers should pay attention to two key issues.
• Whether the property is under seizure. A seized property indicates the owner has outstanding debts. If the court has placed a "waiting-list seizure" (轮候查封), the buyer may need to clear not just the first seizure but also the second, third, and so on. In practice, buyers often end up losing both their money and the property.
• Whether the property is mortgaged. The most common form is a bank mortgage. A mortgaged property cannot be transferred until the mortgage is formally released.
In either case, if the buyer has already paid the deposit and first installment, they risk being unable to obtain the property and also failing to recover their payment.

A clear-cut case may seem easy to win, but in practice there are far too many judgments that cannot be enforced—especially when the judgment debtor owns no attachable assets. In recent years China's case-execution closure rate has risen significantly, largely because many unenforceable cases can now be closed via "termination of the current execution procedure" (终本). Once a case is marked 终本, it counts as closed—regardless of whether anything was actually recovered.

If you have doubts about the counterparty's reliability, always complete a title search beforehand. For the safety of funds already paid, a escrow account can provide protection.
"Pulling the title report" is straightforward and does not require an agent. The owner can check at the real-estate registration center with personal ID, and the buyer can do the same with the purchase contract. However, once the contract is signed the deposit is already at risk. You have two options: invite the seller to run a title query together before signing, or conduct the search yourself after signing (having the agent do it is acceptable, but going yourself gives greater peace of mind).

Before purchasing, buyers must also apply for a home-buyer qualification review with the housing authority. The review is household-based and checks how many properties are registered in the names of family members—defined as the buyer, their spouse, and any minor children. If the buyer fails the qualification review, a deposit dispute typically arises. In such cases the deposit is usually refunded and the transaction cancelled.