Which of the following is true about a title search?

A title search is a critical part of the real estate transaction process that involves examining publicly recorded documents to determine the legal ownership of a property. It serves to uncover any claims, such as liens and easements, that may be attached to the property. Discovering these encumbrances is vital as they can affect the current owner's ability to sell the property or the buyer's ability to gain clear ownership.

Understanding the title ensures that any outstanding debts or rights of way are disclosed prior to closing, allowing potential buyers to make informed decisions. A title search does not guarantee a quick sale; it also does not assess the physical condition of the property or provide an appraisal value. These latter functions fall under different processes in real estate transactions, specifically inspections and appraisals, which serve different purposes than a title search.