Why is it important to conduct a title search before closing?

Conducting a title search before closing is crucial as it ensures that the property's title is clear of claims. This process involves reviewing public records to verify the ownership of the property and to check for any liens, encumbrances, or other potential issues that could affect the title. A clear title means that there are no legal disputes over the ownership and that the buyer can take possession of the property without facing challenges from previous owners or creditors.

If the title search reveals any claims, such as unpaid taxes, mortgages, or rights of way, these issues must be resolved before closing the deal. This protects both the buyer and the lender, as it provides assurance that the buyer is purchasing a property that is free from legal complications, which could lead to financial losses or difficulties in the future. In summary, the importance of conducting a title search lies in safeguarding the buyer's investment and ensuring a smooth and legally sound transaction.