Humber/Ontario Real Estate Course 1 Exam Practice

In the context of real estate transactions, what does a title search involve?

1. Assessing property value for tax purposes.

2. Examining a property's marketable title.

3. Investigating a property's ownership history.

4. Reviewing the current zoning laws.

5. Surveying the land for physical features.

6. Verifying property boundaries.

The correct answer is: Investigating a property's ownership history.

A title search is primarily concerned with examining a property's marketable title, which means reviewing the legal ownership of the property and ensuring that it can be transferred without legal issues. This process involves investigating the ownership history of the property to confirm that the seller has the right to sell it and that there are no encumbrances, such as liens or claims, that could affect the new owner’s rights. While investigating a property's ownership history is a crucial aspect of a title search, the broader scope focuses on establishing a clear marketable title. This includes examining records for any potential disputes, outstanding mortgages, easements, or other interests that may impair the owner’s ability to use or sell the property in the future. Other options mention related but distinct activities that do not directly define a title search. For example, assessing property value for tax purposes pertains to property tax assessment rather than title verification. Similarly, reviewing current zoning laws involves understanding land use regulations, and surveying the land relates to physical measurement rather than title issues. These activities may contribute to a buyer's due diligence but are not components of a title search itself. Therefore, the most accurate choice regarding what a title search involves is the examination of a property's marketable title, ensuring that ownership is clear and