What purpose does a title search serve?

A title search is a vital process in real estate transactions as its main purpose is to identify impairments to the property’s title. This means it examines public records to uncover any claims, liens, encumbrances, or other issues that might affect the rights of the property owner or the ability to sell the property. By revealing such impairments, a title search allows buyers and sellers to proceed with confidence, knowing they are clear of legal obstacles regarding ownership and can protect their investment.

Understanding the importance of a title search is crucial for anyone involved in real estate. It helps ensure that the buyer receives clear title to the property, which is essential for ownership rights. This diligence protects both buyers and lenders, who require assurance that there are no outstanding issues that could affect their claim to the property.