What is the main purpose of a title search?

The main purpose of a title search is to identify any liens or encumbrances on the property. A title search is a crucial step in the process of buying and selling real estate, as it ensures that the title to the property is clear. This means that there are no legal claims, such as mortgages, judgment liens, or other encumbrances that could affect the buyer's rights to the property. During a title search, the history of the property is examined, which includes looking into past ownership, any legal issues related to the property, and current claims against it. This process is vital to ensure that the buyer can take full ownership without the risk of disputes or financial burdens stemming from previous owners.

On the other hand, evaluating the property's market value, verifying the property's square footage, and assessing neighborhood property values, while important aspects of real estate transactions, do not fall under the primary purpose of a title search. These activities are typically conducted through appraisals or market analyses rather than through a title examination. Thus, identifying liens or encumbrances stands out as the key function of a title search, safeguarding both buyers and lenders in the transaction.