In Michigan real estate, what is the purpose of a title search?

The purpose of a title search in Michigan real estate is to verify the legal ownership of a property. This process involves examining public records to trace the history of the title from the present owner back to its origin. By performing a title search, real estate professionals ensure that the seller has the legal right to sell the property and confirm that there are no outstanding claims, liens, or encumbrances that could affect the ownership. Establishing clear title is essential for preventing legal disputes after the sale and ensuring that the buyer receives a clean title to the property.

While determining property tax obligations, assessing property value, and setting management fees are important aspects of real estate transactions, they do not directly relate to the title search's primary function, which focuses solely on verifying ownership and ensuring that the property can be transferred without legal challenges.