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

The purpose of a title search during a real estate transaction is to establish a property’s ownership history. This process involves examining public records to confirm the current ownership of the property, verify any liens or encumbrances, and ensure that there aren’t any legal issues that could affect the transfer of title. By doing this, a title search protects buyers from potential problems that might arise from previous owners, such as unresolved debts or claims against the property.

Understanding ownership history is crucial because it helps to confirm that the seller has the legal right to sell the property, ensuring that the buyer can receive clear title upon completion of the transaction. This aspect is fundamental in real estate, as it safeguards against disputes that can arise from competing ownership claims or issues that could impair the buyer's ability to enjoy or sell the property in the future.