What is the purpose of a title search?

The purpose of a title search is to check title records ensuring legal ownership and the absence of liens. This process involves reviewing public records to confirm that a property is owned by the seller and to identify any claims against the property, such as mortgages, liens, or other encumbrances. By conducting a title search, potential buyers can ensure that the seller has the right to sell the property and that there are no unresolved legal issues that could affect ownership after the purchase.

In the context of real estate transactions, establishing clear and uncontested ownership is crucial for protecting the buyer’s investment. This diligence helps to avoid disputes over property ownership and any hidden claims that could arise after the transaction is completed. Consequently, a title search serves as a safeguard for both buyers and lenders, providing peace of mind that the property title is clear.

The other choices address different aspects of real estate but do not directly relate to the function of a title search. Evaluating investment potential, determining property taxes, and calculating fair market value are important considerations in real estate transactions but are not the primary focus of a title search.