Master Encumbrances 2025 – Unleash Your Real Estate Superpowers!

Question: 1 / 400

What does a title search reveal about a property?

It identifies the previous owners only

It investigates public records for encumbrances and liens

A title search is an essential process in real estate transactions as it investigates public records related to a specific property. The primary purpose of a title search is to uncover any encumbrances or liens that may affect the property. Encumbrances can include various claims or legal interests, such as mortgages, easements, or judgments, that may impede the property's title or restrict its use.

By examining these public records, a title search provides a comprehensive view of the property's legal standing. This is critical for potential buyers, as it ensures they are aware of any financial liabilities or restrictions that come with the property before finalizing a purchase. Having this information safeguards the buyer's investment and helps ensure a clear title transfer.

The other options are either too narrow in focus, as they do not encompass the complete scope of what a title search entails, or they stray entirely from the purpose of the search, such as assessing market trends or property value, which are not the primary objectives of conducting a title search.

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It assesses property value exclusively

It determines market trends

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