What is the purpose of a title search?

A title search is a crucial process in real estate transactions designed to ensure that the seller has a clear and valid title to the property and that there are no outstanding claims or liens against it. By conducting a title search, the buyer can verify the legal ownership of the property, ensuring that the seller is indeed the rightful owner and has the authority to sell it. Additionally, the title search will reveal any encumbrances that may affect ownership, such as easements, other claims, or unresolved debts tied to the property.

This verification is vital to prevent any future disputes regarding ownership or to identify issues that could complicate the sale or ownership process. The outcome of the title search is typically documented in a title report, which serves as a foundational element in the closing process of a real estate transaction.

In contrast, determining mortgage rates is focused on financing aspects, assessing physical condition entails evaluating the structural integrity of the home, and calculating resale value involves market analysis rather than the ownership verification that a title search provides. Thus, while each of the other choices pertains to real estate in some capacity, they do not fulfill the primary function of validating ownership and claims against a property.