Immediately after the filing of an application the court shall enter an order referring it to one of the examiners of title, who shall search the records and investigate all facts stated in the application, or otherwise brought to the examiner’s notice, and file in the case a report thereon, concluding with a certificate of the examiner’s opinion upon the title. The registrar shall give notice to the applicant of the filing of the report. If the opinion of the examiner is adverse to the applicant the applicant shall be allowed by the court a reasonable time in which to elect to proceed further or to withdraw the applicant’s application. The election shall be made in writing and filed with the registrar.