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

The primary purpose of a title search in real estate transactions is to verify ownership and identify any liens, claims, or encumbrances that may affect the property. By conducting a title search, the buyer and lender gain assurance about the legal standing of the property, confirming that the seller has the right to sell it and that there are no unresolved issues that could interfere with the transaction.

This process involves examining public records to trace the property's history, ensuring that the title is clear. If any claims or liens are discovered, such as unpaid taxes or mortgage liens, they must be addressed before the sale can proceed. This step is crucial for protecting the buyer's investment; it helps to prevent potential disputes over ownership or financial obligations in the future.

While expediting the closing process and assessing the market value of a property are important aspects of real estate transactions, they are not the primary focus of a title search. Similarly, negotiating lease terms pertains to rental agreements rather than the title of a property. Thus, verifying ownership and identifying liens or claims stands out as the central purpose of a title search.