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

The primary purpose of a title search in real estate transactions is to verify ownership and check for any liens or encumbrances on a property. This thorough examination of public records allows the buyer and their lender to ensure that the seller has the legal right to transfer ownership and that there are no outstanding debts or legal claims against the property that could complicate the transaction.

A title search helps identify any issues such as unpaid property taxes, mortgages, easements, or other liens that might affect the buyer's ownership or enjoyment of the property. By uncovering these potential problems before closing, a title search protects the interests of all parties involved and facilitates a smoother transaction process.

Other options, such as assessing market value or analyzing buyers' financial situations, are important steps in the real estate process but are not the primary function of a title search. Similarly, arranging financing is a separate task that deals with a buyer's ability to fund the purchase, rather than ensuring the legal standing of the property title.