What is the significance of having a title search completed?

Having a title search completed is a crucial step in the real estate transaction process because it confirms legal ownership and identifies any potential issues with the title. This search provides an examination of public records to verify who legally owns the property and to uncover any claims, encumbrances, or defects that may affect the title.

It is essential for buyers to ensure that the seller has a clear title, meaning there are no outstanding liens, mortgages, or legal disputes that could jeopardize their ownership after the purchase. Any problems identified through the title search must be addressed before the transaction is finalized, ensuring that the buyer can have peace of mind regarding their investment.

The factors focused on in other options, such as determining land size, establishing property taxes, or assessing property value, do not directly relate to the primary purpose of a title search. These aspects are addressed through different processes and evaluations and are not the main concern of title insurance, which is fundamentally about ownership and encumbrances.