Gold Coast 45-Hour Practice Exam

Question: 1 / 400

What is the purpose of conducting a title search?

To arrange the financing for a property

To verify property ownership and check for liens

The purpose of conducting a title search is primarily to verify property ownership and check for liens. This process involves examining public records to determine the legal status of a property. It ensures that the seller has clear title to the property, meaning they legally own it and have the right to sell it. Additionally, a title search reveals any encumbrances, such as liens, that could affect the buyer's ownership rights.

By confirming these details, a buyer can avoid potential legal issues that could arise after the purchase. If there are outstanding liens or claims against the property, the buyer may need to address these before proceeding with the transaction. Therefore, conducting a thorough title search is essential for protecting both the buyer's investment and ensuring a smooth transfer of ownership.

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To assess the property's market value

To prepare the property for sale

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