What is the purpose of a title search?

The purpose of a title search is to identify any issues or claims against a property’s title. This process is essential in real estate transactions, as it allows potential buyers, lenders, and other interested parties to ensure that the title is clear and free from disputes. A title search involves reviewing public records, legal documents, and historical information related to the property to uncover any liens, encumbrances, or ownership disputes that may affect the property’s title.

By identifying these potential issues, stakeholders can take necessary precautions, such as negotiating repairs, settling claims, or acquiring title insurance to protect against future disputes. A clear title is crucial for a smooth transaction, as it confirms that the seller has the legal right to sell the property without any unresolved issues that could hinder the sale or ownership transition.

In contrast, determining market value, evaluating repair costs, and assessing neighborhood value trends deal with different aspects of real estate analysis and do not specifically address the core purpose of a title search.