Humber/Ontario Real Estate Course 1 Exam Practice

What is the main benefit of conducting a title search in the Registry system?

1. Ensuring the property's market value.

2. Confirming the property's physical boundaries.

3. Verifying the legal owner and any claims on the property.

4. Locating the property's easements and restrictions.

5. Determining the previous seller's tax obligations.

6. Calculating the property's historical appreciation rates.

The correct answer is: Verifying the legal owner and any claims on the property.

Conducting a title search in the Registry system primarily serves to verify the legal owner of a property and identify any claims or encumbrances that may exist against it. This process is crucial for ensuring that the title is clear, which means that the current owner has the right to sell the property without any disputes, liens, or other claims that could affect the transfer of ownership. While understanding a property's market value, physical boundaries, taxes, easements, and historical appreciation are important elements in real estate transactions and management, they are not the primary purpose of a title search. The main goal is rooted in confirming ownership and any potential legal issues associated with the property, which is essential for protecting the interests of both buyers and lenders in a real estate transaction.