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

The purpose of a title search in real estate transactions is primarily to verify the ownership of a property and ensure there are no liens or claims against it. This process involves examining public records to trace the history of the property’s title, which includes identifying all previous owners and any legal issues related to the property, such as mortgages or liens.

By conducting a title search, potential buyers can confirm that the seller has the right to transfer ownership and that the title is clear. If there are outstanding liens or claims, these can pose significant risks to the buyer, including financial burdens or legal disputes. Thus, the title search helps to protect the buyer's interests and ensures a smooth transaction by confirming that the property is free of encumbrances that could lead to complications after purchase.

The other options relate to different aspects of the real estate transaction but do not pertain to the specific function of a title search. Determining the price involves market analysis or appraisals, inspecting the condition pertains to physical assessments of the property, and assessing market value relates to property evaluations by real estate professionals. All these activities are important but serve different purposes than a title search.