What is the significance of a title search?

The significance of a title search lies in its primary purpose, which is to confirm the legal ownership of a property. Conducting a title search involves a thorough examination of public records to uncover the history of a property's ownership. This process helps to ensure that the seller has the legal right to convey the property and that there are no outstanding claims, liens, or encumbrances that could affect the ownership rights of the new buyer.

By verifying ownership and identifying any potential issues that might cloud the title, a title search plays a critical role in protecting the interests of both buyers and lenders. If any discrepancies or claims are found during the title search, they can be addressed before the transaction closes, thus preventing future legal disputes.

The other options do not accurately reflect the true purpose of a title search. Identifying potential buyers, establishing asking prices, and negotiating repair costs are all aspects related to the marketing and sale process, rather than the verification of ownership rights and legal title.