What is the primary purpose of a title search during a real estate transaction?

The primary purpose of a title search during a real estate transaction is to uncover issues affecting the marketability of the title. This process involves investigating the historical records related to the property to identify any potential claims, liens, encumbrances, or legal issues that could impact the ownership rights of the buyer. A thorough title search ensures that the seller has the legal right to sell the property and that the title is clear and free from disputes. Understanding these potential issues is crucial for both buyers and lenders, as they can affect the value and ownership of the property.

Other options do not pertain directly to the main goal of a title search. Determining the current market value of the property relates more to appraisal services than title examination. Assessing property taxes is a function of local tax authorities and not the title search process. Estimating renovation costs focuses on physical improvements and is unrelated to the legal aspects of property ownership, which is the main focus of a title search.