What is the primary purpose of a title search in real estate transactions?

What is the primary purpose of a title search in real estate transactions?

• A. To Determine the Home's Current Market Value
• B. To Verify Seller's Title and Uncover Liens, Encumbrances, and Defects Before Transfer
• C. To Appraise the Property for Tax Assessment
• D. To Check the Neighborhood Crime Rate

Answer: (B)

A title search focuses on who truly owns the property and what claims could affect that ownership before transfer. By examining public records, it verifies the seller’s legal title and uncovers any liens, mortgages, judgments, taxes, easements, covenants, or other encumbrances, as well as potential defects like forged documents or undisclosed heirs. The goal is to ensure the buyer receives a marketable title and can obtain title insurance, protecting against future claims tied to the property. If issues are found, they can be resolved or insured against. This isn’t about current market value, tax assessment, or neighborhood crime rates, which are handled by other processes.

A title search focuses on who truly owns the property and what claims could affect that ownership before transfer. By examining public records, it verifies the seller’s legal title and uncovers any liens, mortgages, judgments, taxes, easements, covenants, or other encumbrances, as well as potential defects like forged documents or undisclosed heirs. The goal is to ensure the buyer receives a marketable title and can obtain title insurance, protecting against future claims tied to the property. If issues are found, they can be resolved or insured against. This isn’t about current market value, tax assessment, or neighborhood crime rates, which are handled by other processes.