What does an opinion of title provide regarding a property's title?

What does an opinion of title provide regarding a property's title?

• A. A legal warranty of ownership
• B. An estimate of market value
• C. Assessment of property taxes
• D. Condition report of the title

Answer: (D)

An opinion of title provides a condition report of the title, presenting an analysis of the records of ownership and the legal status of the property’s title. This assessment typically includes a review of public records to determine whether the title is clear and free from liens, encumbrances, or other legal issues that might affect ownership. The goal is to communicate the state of the title to the client, highlighting any potential problems or claims against the property. This is important because potential buyers or lenders rely on a clear understanding of the title's condition before proceeding with a transaction. By dissecting the title's history and any existing claims or issues, the opinion helps individuals make informed decisions regarding their investments. The other options do not accurately reflect what an opinion of title entails. A legal warranty of ownership would imply guarantees that ownership is valid, which is typically offered by title insurance rather than an opinion. An estimate of market value pertains to the worth of the property, which is a separate process, usually involving appraisals. Lastly, assessment of property taxes relates to the evaluation for taxation purposes, which is not part of analyzing the title itself.

An opinion of title provides a condition report of the title, presenting an analysis of the records of ownership and the legal status of the property’s title. This assessment typically includes a review of public records to determine whether the title is clear and free from liens, encumbrances, or other legal issues that might affect ownership. The goal is to communicate the state of the title to the client, highlighting any potential problems or claims against the property.

This is important because potential buyers or lenders rely on a clear understanding of the title's condition before proceeding with a transaction. By dissecting the title's history and any existing claims or issues, the opinion helps individuals make informed decisions regarding their investments.

The other options do not accurately reflect what an opinion of title entails. A legal warranty of ownership would imply guarantees that ownership is valid, which is typically offered by title insurance rather than an opinion. An estimate of market value pertains to the worth of the property, which is a separate process, usually involving appraisals. Lastly, assessment of property taxes relates to the evaluation for taxation purposes, which is not part of analyzing the title itself.