What is the purpose of a title examination?

The purpose of a title examination is centered around identifying any defects in the title to a property. This process involves a thorough review of public records to establish the legal ownership of the property, verify that it is free from liens, and ensure there are no claims or conflicts regarding ownership. Title defects can include issues such as unpaid property taxes, prior liens, unclear property boundaries, or claims by other parties. By identifying these potential issues before a sale or transfer of ownership occurs, the title examination helps protect both the buyer and the lender from future disputes or unexpected legal claims on the property. This verification process is crucial to ensuring that the property can be sold with a clear title, thus providing peace of mind to all parties involved in the transaction.