When a real estate agent examines the title report or abstract of title from public records, what is this process called?

The process of examining the title report or abstract of title from public records is referred to as the examination of title. This crucial step involves a thorough review of the property’s title history to identify any potential issues, such as liens, claims, or encumbrances that could affect ownership or affect the marketability of the property.

During this examination, the agent verifies the legitimacy of the title, ensuring that it is free from defects and that the seller has the right to sell the property. It is an essential practice in real estate transactions to ensure that buyers are fully informed about the property they are purchasing. Establishing the legal ownership and any associated rights is vital for a smooth transfer of ownership.

Understanding the terminology around this process helps agents effectively communicate with clients and other professionals in the real estate industry, facilitating transparent and informed transactions.