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

The purpose of a title search in real estate is primarily to confirm legal ownership of a property and to identify any liens or claims against it. This process involves examining public records and documents to trace the property's ownership history. It ensures that the seller has the legal right to sell the property, which is crucial for any buyer to avoid future legal disputes. Knowing whether any liens exist is equally important, as these can affect the buyer's ownership rights and financial obligations.

Understanding the legal status of a property's title is fundamental in real estate transactions, as it protects all parties involved by ensuring that the title is clear and marketable. This helps in preventing issues such as encumbrances or disputes over ownership after the purchase is completed.

In contrast, surveying the property pertains to evaluating boundaries and physical characteristics, establishing market value focuses on pricing strategies influenced by market conditions, and assessing property taxes involves analyzing local taxation records, none of which fall under the scope of a title search.