What is the primary purpose of obtaining a title report for a property?

Obtaining a title report for a property primarily serves to confirm legal ownership and identify any liens associated with the property. This process is crucial in real estate transactions as it provides a clear understanding of who legally owns the property and reveals any outstanding obligations against it, such as mortgages, tax liens, or legal judgments. Knowing the current ownership and any encumbrances ensures that the buyer is fully aware of any potential issues that could affect their ownership rights or responsibilities.

In addition to identifying the rightful owner, the title report also ensures that there are no issues that could impede the transfer of ownership. For example, if there are liens against the property, the new owner could inherit those financial obligations, potentially leading to legal complications. Therefore, the title report acts as a safeguard for buyers and lenders, helping to ensure a smooth transaction.

While evaluating market value, considering neighborhood desirability, and satisfying lender requirements can be important aspects of real estate transactions, they do not directly relate to the primary purpose of a title report, which centers around validating ownership and disclosing liens.