In real estate transactions, what does a title search reveal?

A title search primarily reveals the history of property transfers and any potential claims against the property. This process involves investigating public records to determine the chain of ownership and to confirm that there are no liens, mortgages, easements, or other encumbrances that could affect the property’s title. Understanding the history of the property is crucial for prospective buyers, as it protects them from legal disputes and ensures a clear title at the time of a sale.

While market conditions, the current owner's financial status, and the investment potential may be relevant to a real estate transaction, they fall outside the scope of what a title search specifically addresses. A title search is focused solely on verifying ownership and uncovering any potential legal issues that could impact the transaction, making it a vital step in ensuring that buyers can secure their investment without the risk of unforeseen claims or issues arising from the property's past.