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

A title search is a crucial step in real estate transactions, primarily aimed at determining the legal ownership of a property. This process involves examining public records and various documents related to the property to ensure that the title is clear, meaning there are no outstanding claims, liens, or legal issues that could affect the transfer of ownership. By verifying legal ownership, a title search helps to confirm that the seller has the right to sell the property and that the buyer will receive a valid and marketable title upon completion of the transaction.

This verification is essential for protecting the interests of both buyers and lenders, as it minimizes the risk of future disputes over ownership or financial encumbrances that were not disclosed before the purchase. A clear title provides peace of mind to the new owner, ensuring that they can fully enjoy their property without unexpected legal challenges.