In real estate transactions, what is the primary purpose of a title search?

The primary purpose of a title search is to identify any liens or encumbrances on a property. This is a crucial step in real estate transactions because it ensures that the buyer is fully aware of the legal status of the property being purchased. A title search reviews public records to track the chain of ownership and uncover any claims against the property, such as mortgages, tax liens, or easements that may affect the buyer’s rights.

Finding and resolving any existing liens or encumbrances is essential for protecting the buyer's investment. If left unaddressed, these issues can lead to legal disputes or financial burdens after the purchase has occurred. By performing a thorough title search, potential buyers can avoid future complications, ensuring a smoother transaction and clear ownership of the property.

The focus is not on evaluating market value, determining zoning regulations, or assessing the structural integrity of the building, which are important considerations in real estate but serve different purposes. Thus, the identification of liens and encumbrances stands out as the core objective of conducting a title search in real estate transactions.