Which statement best describes the purpose of a title search in a Nova Scotia real estate closing?

Which statement best describes the purpose of a title search in a Nova Scotia real estate closing?

• A. To verify the seller has marketable title and to identify liens or encumbrances.
• B. To determine the current market value of the property.
• C. To set the amount of land transfer tax.
• D. To confirm the buyer's financing.

Answer: (A)

In a Nova Scotia closing, the title search is used to ensure the seller holds a marketable title and to uncover any liens or encumbrances that could affect the buyer’s ownership or the ability to insure the title. It checks the chain of ownership and reveals registered interests such as mortgages, liens, judgments, easements, and restrictive covenants. By identifying these issues upfront, the parties can address them before closing—paying off debts, obtaining releases, or otherwise ensuring a clear transfer of title. The other tasks listed aren’t the purpose of a title search: market value is determined by market data and appraisal, not by examining the title; land transfer tax is assessed based on the property price and tax rules; financing is arranged with the lender and documented separately, not through the title search process.

In a Nova Scotia closing, the title search is used to ensure the seller holds a marketable title and to uncover any liens or encumbrances that could affect the buyer’s ownership or the ability to insure the title. It checks the chain of ownership and reveals registered interests such as mortgages, liens, judgments, easements, and restrictive covenants. By identifying these issues upfront, the parties can address them before closing—paying off debts, obtaining releases, or otherwise ensuring a clear transfer of title.

The other tasks listed aren’t the purpose of a title search: market value is determined by market data and appraisal, not by examining the title; land transfer tax is assessed based on the property price and tax rules; financing is arranged with the lender and documented separately, not through the title search process.