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

The purpose of a title search in real estate transactions is fundamentally to verify ownership and identify any liens or encumbrances that may affect the property. This process involves examining public records to confirm the legal ownership of the property and to uncover any claims or obligations that could impact the transfer of ownership.

Performing a title search is essential for a buyer or their agent because it provides clarity on whether the property is free of legal issues. For instance, if there are outstanding mortgages, unpaid taxes, or other encumbrances such as easements, these will need to be resolved before the sale can proceed smoothly. This step ensures that the buyer is protected against unexpected claims or disputes concerning the property after the purchase is finalized.

In contrast, assessing the ecological value of the property, estimating future market trends, or determining the history of the property’s sale are not the primary objectives of a title search. These aspects may be important in other contexts, but they do not directly relate to the verification of ownership or the identification of legal obligations associated with the property.