Escrow & Title
The purpose of a title search is to:
ADetermine the market value of the property
BExamine public records to verify ownership and identify encumbrances✓ Correct
CInspect the physical condition of the property
DCalculate the transfer tax owed
Explanation
A title search examines public records to verify the chain of ownership and identify any liens, encumbrances, restrictions, or other matters affecting the title to the property.
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Key Terms to Know
Transfer Tax
A tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.
Closing CostsFees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
State-Specific Concepts
Transfer Tax
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