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

The purpose of a title search in a real estate transaction is to ensure that the property title is clear and transferable. A title search involves reviewing public records to uncover any claims, liens, or encumbrances on the property that could affect ownership. This process is crucial because it verifies that the seller has the legal right to sell the property and that it is free from any legal disputes that could arise after the sale.

A clear title means there are no outstanding debts or legal issues associated with the property, which can protect the buyer from future legal troubles. This is especially important as it provides peace of mind to the buyer and can be essential for securing financing or insurance. Essentially, a title search plays a fundamental role in safeguarding the interests of both the seller and the buyer in a transaction.