What is a title search?

A title search is primarily defined as an investigation into public records. This process is crucial in real estate transactions as it allows for the identification of any legal claims, liens, or encumbrances on a property. By examining public records, which may include deeds, tax records, and court filings, a title search establishes the ownership history and ensures that the title is clear for transfer. This step is vital in providing protection to buyers and lenders against potential disputes or claims against the property they are acquiring, allowing them to have confidence in the title's marketability.

The other options provided do not correctly define a title search. Estimating property value involves assessing the worth of a property, which is not the focus of a title search. A review of financial statements pertains to analyzing an entity's financial health, which is unrelated to title matters. Similarly, measuring property area focuses on the physical dimensions of the property rather than its legal and ownership status. Thus, the correct choice accurately represents the specific function and essential purpose of a title search in the context of real estate transactions.