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

The primary purpose of a title search in a real estate transaction is to confirm legal ownership and identify encumbrances. Conducting a title search involves examining public records to ensure that the property is owned by the seller and that there are no outstanding claims, liens, or other encumbrances that could affect the transfer of ownership. This helps protect the interests of the buyer by ensuring that they are acquiring a clear title to the property and are aware of any restrictions or obligations associated with it.

Understanding ownership and encumbrances is critical because any unresolved issues could result in financial liabilities or legal disputes in the future. Thus, accurately conducting a title search is essential for a smooth transaction and peace of mind for the buyer.