What role does a title search play in identifying encumbrances?

A title search is a critical process in real estate transactions, particularly in the context of identifying encumbrances on a property. The primary function of a title search is to examine public records to uncover any claims, liens, or other encumbrances that may affect the property in question. By thoroughly investigating these records, the title search can reveal existing interests in the property, such as mortgages, easements, or other financial obligations that may not be immediately apparent to a potential buyer or title holder.

While verifying ownership is also part of the title search process, the main focus regarding encumbrances specifically is on identifying what currently exists that could impact the use or value of the property. Additionally, a title search does not eliminate any liens or prevent future encumbrances; it merely identifies what is already there at the time of the search. Thus, the ability of a title search to uncover existing encumbrances is essential for informed decision-making in real estate transactions.