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

The purpose of a title search in real estate transactions is to verify the ownership and identify any liens or encumbrances on the property. This process is crucial because it helps to ensure that the seller has the legal right to sell the property and that there are no existing claims or legal issues that could affect the buyer's interest in the property.

By conducting a title search, potential buyers can uncover important information such as outstanding mortgages, tax liens, or other claims against the property. This information is essential to prevent future legal disputes and to ensure that the buyer is acquiring clear and marketable title to the property. In essence, a title search provides peace of mind by ensuring that all ownership records are accurate and that the buyer will not inherit any undisclosed debts associated with the property.

While the other options touch on relevant aspects of real estate transactions, they do not capture the primary function of a title search, which is to ascertain the property's legal ownership and the status of any claims against it.