American Land Title Association (ALTA) Practice Exam 2025 - Free ALTA Practice Questions and Study Guide

Question: 1 / 400

What is the main benefit of conducting an investigative title search?

Identify future development opportunities

Reveal potential claims or ownership issues that may affect title

Conducting an investigative title search primarily aims to reveal potential claims or ownership issues that may affect the title. This process involves a comprehensive examination of the public records related to the property, including previous deeds, liens, encumbrances, and other legal documents. By uncovering these factors, a title search helps ensure that the seller has the legal right to transfer the property and that the buyer will receive a clear title, free from unexpected claims.

Identifying ownership issues is crucial for protecting the interests of future property owners. It allows them to make informed decisions and take appropriate actions to resolve any issues that may arise, such as disputes over land boundaries or outstanding liens that could hinder their use or enjoyment of the property. Therefore, the focus on assessing possible title defects is integral to the title search process, which is vital for establishing certainty and security in property transactions.

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Establish the property's market value

Identify neighboring property owners

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