What is a title report?

A title report is a crucial document in real estate transactions that provides an overview of the property’s legal status. It details the findings of a title search, which investigates the history of the property’s ownership and identifies any claims, liens, or encumbrances that may affect the title. This includes information about mortgages, easements, restrictions, and any other legal interests in the property.

The significance of the title report lies in its role in ensuring that the buyer receives clear and marketable title to the property, free from undisclosed claims or encumbrances that could arise after the sale. This protection is essential for both buyers and lenders, as it mitigates potential disputes over ownership and financial liabilities.

In contrast, the other options provided do not encapsulate the purpose of a title report. A document about market trends pertains to economic analysis rather than ownership status. Information solely about property taxes focuses on financial obligations but does not comprehensively address ownership issues. Lastly, a survey of property boundaries deals with the physical dimensions and location of the property itself, rather than the legal claims associated with it. Thus, the correct identification of the title report's nature as a document outlining findings relevant to property ownership and encumbrances is critical for understanding its importance in