Escrow & Title
What is the purpose of a title search in a New Mexico real estate transaction?
ATo determine the current market value of the property
BTo examine public records for liens, encumbrances, and defects affecting the title✓ Correct
CTo verify that the property's zoning is appropriate for intended use
DTo confirm the property's square footage and legal description
Explanation
A title search involves reviewing public records (deeds, court records, tax records, and liens) to identify any claims, encumbrances, or defects that could affect the buyer's clear ownership of the property.
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