Humber/Ontario Real Estate Course 1 Exam Practice

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What is one of the primary functions of a title search in real estate transactions?

To find previous owners of the property
To estimate property taxes
To ensure the property's title is clear of liens or disputes
To determine market value of the property

The correct answer is: To ensure the property's title is clear of liens or disputes

The primary function of a title search in real estate transactions is to ensure that the property's title is clear of liens or disputes. This process involves examining public records to confirm the legitimacy of the property title, identifying any existing mortgages, liens, or claims against the property, and verifying the seller's right to transfer ownership. A clear title is crucial for both buyers and lenders as it protects them from future legal disputes and potential financial liabilities relating to the property's ownership history. While identifying previous owners of the property can be a component of a title search, the main objective is more focused on ensuring that the title is encumbered by any claims that could affect the buyer's rights. Estimating property taxes and determining market value, although important aspects of real estate, are not direct functions of a title search.