What is the purpose of a title search, and what is typically examined?

• A. To verify ownership and identify liens, encumbrances, and the chain of title
• B. To determine the appraised value of the property
• C. To assess environmental hazards only
• D. To check the seller's credit score

Answer: (A)

The purpose of a title search is to confirm who owns the property and to uncover any issues that could prevent a clean transfer. It involves reviewing the chain of title by examining recorded deeds and other documents to verify the seller’s right to convey ownership. It also identifies liens and encumbrances—such as mortgages, judgments, mechanic’s liens, tax liens, easements, and restrictions—as well as any clouds on title that could create claims against the property. This process helps ensure the buyer receives marketable title and, if needed, guides the issuance of a title insurance policy to protect against defects that aren’t found in the public records. The search is typically performed by a title company or attorney, resulting in a title commitment that outlines what must be cleared before closing. A title search does not assess property value, environmental hazards (those require separate due diligence), or the seller’s credit score.