Humber/Ontario Real Estate Course 2 Exam Practice

What is the primary function of a title search?

1. Ensure compliance with municipal building codes.

2. Establish the legal ownership of the property and identify any claims against it.

3. Evaluate the market value of the property.

4. Verify the structural integrity of a building.

The correct answer is: Establish the legal ownership of the property and identify any claims against it.

The primary function of a title search is to establish the legal ownership of the property and identify any claims against it. By conducting a title search, a real estate professional can determine if there are any existing liens, mortgages, or other encumbrances that may affect the ownership rights of the property. This information is crucial for potential buyers or lenders to ensure that the property's title is clear and marketable. Option A is incorrect because ensuring compliance with municipal building codes is typically done through a building inspection, not a title search. Option C is incorrect because evaluating the market value of the property is usually accomplished through a comparative market analysis or an appraisal, not a title search. Option D is incorrect because verifying the structural integrity of a building is also usually done through a separate building inspection.