Why is a title search essential in real estate transactions?

A title search is essential in real estate transactions primarily to ensure clear ownership and address potential liens related to the property. This process involves a detailed examination of public records to verify the legal ownership of a property, uncover any claims against it, and identify any encumbrances such as mortgages, outstanding taxes, or other liens that could affect the buyer's rights.

Ensuring that the title is clear before a transaction can prevent future legal disputes and protect the buyer's investment. Clear ownership means that the seller has the right to sell the property, and a clean title assures the buyer that they will not inherit any unexpected financial responsibilities or complications after the transaction is completed.

While understanding the property’s history and boundaries are important aspects of real estate transactions, they are secondary to confirming ownership and the status of any potential legal claims. Estimating market value is also crucial for appropriate pricing, but it doesn't relate to the legal ownership and encumbrances that a title search specifically addresses. Therefore, clarity on ownership and liens is the most critical reason for conducting a title search.