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

A title search serves a crucial role in the real estate transaction process by identifying the legal ownership of a property and uncovering any liens or encumbrances that may exist. This search is conducted to ensure that the seller has the right to transfer ownership and that the title is clear of any claims that could affect the buyer's ownership.

By verifying the current ownership and checking for any outstanding mortgages, judgments, or liens, a title search protects both the buyer and the lender from potential legal issues or financial losses that could arise after the purchase. It also confirms that the property can be sold without complications, making it an essential step in real estate transactions.

Knowing the legal status of a property is fundamental for anyone involved in real estate, as it provides peace of mind and financial security, which is why this option is the most accurate and pertinent.