Demystifying the Title Opinion: What Homebuyers Need to Know

By Ellie Mendlik

Buying a home is exciting, but let’s face it—it’s also overwhelming. From the stack of papers you’ll sign at closing to the legal jargon flying around, it’s easy to feel lost. Among the many documents you’ll encounter is one you may not know much about: the title opinion.

So, what exactly is a title opinion?

A title opinion is a written report from an attorney that outlines the legal status of a property’s ownership. This report is based on a review of public records—known as a title search—from the county where the property is located. The title opinion highlights any issues that could affect ownership, such as easements, liens, or unpaid taxes, ensuring the buyer won’t be caught off guard after closing.

Here’s how it works: The seller begins by taking the property’s abstract—a historical summary of ownership and legal activity—to an abstract company. The company updates the abstract using the latest public records, then sends it to the buyer’s attorney.

What’s the attorney’s job? The attorney will dig through the updated abstract and flag any concerns. These fall into two main categories. First are defects that must be fixed before closing—think unpaid mortgages or tax liens. The second group includes informational items the buyer should simply be aware of, like zoning restrictions or utility easements.

Once the attorney finishes their review, they issue a preliminary title opinion. This gets shared with both buyer and seller to resolve any outstanding issues before the deal is sealed. Once everything checks out, the buyer may also apply for an Iowa Title Guaranty certificate—a unique perk for Iowa homebuyers.

Unlike other states that rely solely on private title insurance, Iowa offers a state-run program that adds an extra layer of protection for both homeowners and lenders. Iowa Title Guaranty works hand-in-hand with the attorney’s opinion to offer financial peace of mind against hidden title defects.

After closing, the attorney issues a final title opinion, confirming that all defects have been addressed and the buyer is now the rightful owner.

Buying property doesn’t have to be a mystery. With a clear title opinion and the backing of Iowa Title Guaranty, you can feel confident that your dream home is truly yours—free and clear.