What is one key reason to conduct a title search?

• A. To estimate repair costs of the property
• B. To determine legal ownership and claims against the property
• C. To evaluate the borrower's credit score
• D. To calculate expected closing costs

Answer: (B)

Conducting a title search is essential primarily to determine legal ownership and any claims against the property. This process involves reviewing public records to uncover the history of the property's title, which includes identifying previous owners, ensuring there are no outstanding liens, and confirming that the current seller has the right to sell the property. By verifying legal ownership, a title search helps prevent future disputes over property rights, ensuring that the buyer or lender can trust that the title is clear before proceeding with the transaction.

Evaluating the borrower's credit score, calculating expected closing costs, or estimating repair costs of the property, while relevant to the overall mortgage process, are not directly linked to the purpose of a title search. These activities serve different functions in assessing the buyer's financial health or project feasibility, but they do not relate to the legal ramifications associated with the property’s title.