Oregon 30-Hour Real Estate Law Practice Test

A title officer will perform a title search in order to what?

1. Ensure the buyer is qualified for a loan

2. Make sure there are no clouds on the title

3. Gather information for a real estate appraisal

4. Verify the property value

The correct answer is: Make sure there are no clouds on the title

A title officer performs a title search primarily to ensure that there are no clouds on the title. This task involves examining public records related to the property to identify any liens, claims, or encumbrances that may affect ownership. Clear title is essential for both the buyer and lender, as it confirms that the property is free from disputes and legal issues that could potentially hinder the transfer of ownership. Clearing up any such clouds on the title protects the new owner and the lender by ensuring that the property can be transferred smoothly and without unforeseen complications. This process is crucial before closing a real estate transaction, as a cloud on the title can lead to significant problems, including potential financial losses or challenges in acquiring financing. Other options focus on aspects like loan qualification, property value determination, and appraisal, which are important in the real estate process but do not relate directly to the role of the title officer in establishing the legal ownership of the property. The title search itself specifically addresses the integrity of the title, making the primary goal to ascertain a clear and marketable title for the transaction.