American Land Title Association (ALTA) Practice Exam

A title search is a crucial process in real estate transactions, as it helps establish the ownership of a property and identifies any liens, encumbrances, or other claims against it. The correct documentation needed for a title search includes deeds, mortgages, divorce decrees, and tax records.

Deeds are essential because they provide historical ownership information and show how title has been transferred over time. Mortgages indicate what debts are linked to the property and help identify any outstanding financial obligations that might affect ownership. Divorce decrees can be relevant if property ownership has changed due to a divorce settlement, affecting how the title is held. Tax records are vital for uncovering any outstanding property taxes, which could result in a lien against the property, potentially complicating the transfer of title to a new owner.

In contrast, bank statements and credit reports are not directly related to the status of the property title itself; they provide information about a person's financial situation but do not pertain to ownership rights or encumbrances on the property. Insurance policies and inspection reports, while important in the context of real estate transactions, do not serve the purpose of verifying ownership or identifying claims against the property. Similarly, lease agreements and rental applications relate to the property’s rental status but do