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

Prepare for the Maryland Land Title Examination. Utilize flashcards and multiple-choice questions, each accompanied by hints and explanations. Ensure your success on test day!

The primary purpose of a title search in real estate transactions is to identify any claims, liens, or encumbrances on the property. Conducting a title search ensures that the seller has the legal right to transfer ownership and that the property is free of any legal issues that could affect the buyer's title. By uncovering any existing claims or liens, such as mortgages or judgments against the property, the title search provides crucial information that helps protect the buyer's ownership interests.

Understanding the property's title history allows for informed decision-making and risk assessment, ensuring that the buyer can proceed with the transaction confidently. Additionally, identifying any encumbrances helps in negotiating resolutions before the sale is finalized, thereby safeguarding the investment in the property.

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