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

The primary purpose of a title search in a real estate transaction is to identify any claims, liens, or issues related to the property’s title. This thorough examination of public records ensures that the seller has a clear and marketable title, meaning there are no unresolved legal issues that could affect ownership. A title search investigates past ownership, financial rights, easements, and any encumbrances that could impact the new owner’s rights to the property. By identifying these potential hurdles before the transaction is completed, the buyer can be fully informed and secure against future claims or disputes over ownership.

The other options include aspects that are not directly related to the primary function of a title search. Future property value is influenced by many factors beyond the title. Similarly, confirming the condition of the property and ensuring compliance with local building codes are part of property inspections and municipal requirements, rather than the scope of a title search. These activities are essential but serve different purposes in the real estate process.