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 primarily to verify the seller's ownership of the property. This process involves examining public records to confirm that the seller has a clear and marketable title to the property being sold. It helps ensure that there are no liens, encumbrances, or other legal issues that could affect the buyer's ownership rights once the transaction is completed.

By conducting a title search, a buyer can gain confidence that they are purchasing property from the rightful owner and can avoid potential disputes over ownership in the future. This step is critical in the due diligence process to ensure a secure and lawful transfer of property ownership.

While assessing property taxes and estimating market value are important aspects of real estate transactions, they are not the primary focus of a title search. Similarly, scrutinizing construction plans pertains to assessing the physical building of a property rather than its legal ownership, which further differentiates these functions from the main goal of a title search.