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

The purpose of a title search in real estate transactions is to verify the legal ownership of a property and identify any liens. This crucial step ensures that the seller has the right to sell the property and that there are no unresolved claims against it, such as mortgages, tax liens, or easements that could affect the buyer's ownership rights. By uncovering any encumbrances or defects in the title, potential buyers can make informed decisions and address any issues before finalizing the sale. This process is vital for protecting the interests of both the buyer and lender, as clear ownership is necessary for the transfer of property. In contrast, the other options focus on different aspects of real estate transactions that do not pertain specifically to the examination of ownership and title integrity.