What does a title search primarily help to discover?

Prepare for the Maryland Title Insurance Test with targeted multiple-choice questions, including hints and explanations for each to help you succeed. Get ready to ace your exam!

A title search primarily aims to uncover existing liens and encumbrances on a property. This process is essential in the realm of real estate transactions because it provides a comprehensive overview of any claims, liabilities, or restrictions that may affect the property. For instance, if there are outstanding mortgages, mechanic's liens, or other legal claims, these must be resolved before a new title can be issued or property transferred. Understanding these factors is critical for both buyers and lenders, as they influence ownership rights and the financial commitment involved in purchasing the property.

In contrast, determining market value involves assessing comparable sales and property conditions, which is not the focus of a title search. Evaluating property taxes owed is a separate aspect related to financial responsibilities on the property but does not fall under the purview of a title review. Additionally, while future property appreciation could be a consideration for buyers, predicting market trends is outside the scope of what a title search reveals. Hence, option C correctly identifies the primary purpose of a title search in the context of real estate transactions.

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