A title search is a crucial step in real estate transactions, revealing any existing encumbrances on a property’s title. These encumbrances, such as monetary claims secured by the property, can significantly impact ownership rights and transferability. For example, unpaid taxes, contractor bills, or court judgments can result in a claim against the property, affecting its sale or refinancing.
Discovering potential title issues early in a transaction safeguards buyers from inheriting financial obligations and protects lenders from unexpected losses. Historically, title searches involved laborious manual reviews of public records. Modernized systems, though faster and more efficient, still require careful analysis to understand the implications of discovered records. A clear title is essential for secure property ownership, facilitating smooth transactions and providing peace of mind.