Finance
In Indiana, what is the primary purpose of a title search before closing?
ATo determine the property's market value
BTo verify that the seller has clear, marketable title and identify any liens or encumbrances✓ Correct
CTo confirm the property's square footage
DTo ensure the property meets building code requirements
Explanation
A title search examines public records to verify the seller's ownership, identify any liens, judgments, easements, or other encumbrances on the property, and confirm that the buyer will receive clear, marketable title at closing.
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Key Terms to Know
Easement
A non-possessory right to use another person's land for a specific purpose.
EncumbranceAny claim, lien, charge, or liability attached to real property that affects its value or limits its use.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Math Concepts
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