Oregon 30-Hour Real Estate Law Practice Test

Before selling a home, what is essential to check on the property?

1. Local crime rates

2. Defects on the title

3. Market value

4. Neighborhood demographics

The correct answer is: Defects on the title

Checking for defects on the title is essential before selling a home because the title conveys ownership of the property. Any defects can lead to significant legal issues or delays during the selling process. For instance, if there are liens, encumbrances, or other claims against the property that are not resolved, it could prevent a clear transfer of ownership to the buyer. Additionally, such defects can affect the marketability of the property and could potentially lead to disputes after the sale. On the other hand, while local crime rates, market value, and neighborhood demographics are important factors to consider in the context of real estate, they do not directly impact the legal ability to sell the property or the validity of the title itself. These factors may influence a buyer's decision, but they are secondary to ensuring that the title is clear and marketable.