What is the primary purpose of a title search?

The primary purpose of a title search is to verify legal ownership and identify any liens or encumbrances on a property. When a title search is conducted, it investigates public records to ensure that the property's title is clear, meaning that there are no outstanding claims or issues that could affect ownership. This includes checking for any mortgages, judgments, or other liens that may exist against the property. Understanding the legal ownership is crucial for buyers because it confirms that the seller has the right to sell the property without any legal disputes.

Additionally, identifying liens is important as these can affect the buyer's rights and obligations after the purchase. For instance, if there are existing liens, the buyer may be responsible for resolving them in order to take full ownership of the property.

The other options, while related to the real estate process, do not reflect the primary purpose of a title search. Appraising the property focuses on determining its market value, which is separate from verifying ownership. Determining market value and finalizing closing costs are steps in the real estate transaction process that occur after ensuring the title is clear. Therefore, the correct answer is centered on confirming ownership and identifying any financial claims against the property.