What is the main purpose of a title search in real estate transactions?

Prepare for the National Ownership Exam with study materials including flashcards and multiple choice questions featuring detailed hints and explanations. Get ready to ace your exam!

The main purpose of a title search in real estate transactions is to determine ownership and check for liens. A title search involves examining public records to verify the current ownership of a property and uncover any claims against it, such as liens, mortgages, or judgments. This process ensures that the seller has the legal right to sell the property and that the buyer is protected from potential legal issues that could arise from previous ownership claims or debts associated with the property.

By establishing a clear title, the title search helps prevent disputes over ownership and ensures that the buyer is acquiring the property free of any encumbrances that could affect their rights to it. This is a critical step in the transaction to safeguard both parties involved, particularly the buyer, who relies on this information for a secure and valid purchase.

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