Why is a Title Search Necessary when purchasing Real Estate?

Before a bank will loan you money to purchase a piece of real estate (also known as real property) the bank will require a title search for all current liens upon the land. If, however, a bank in not involved in the purchase (it is a cash purchase) you will want to conduct your own title search through a title company.  

If you do not conduct your own title search, and there are liens on the property, you as the new owner would have to pay or satisfy those liens before selling the land or obtaining a loan.  This encumbrance can be avoided by using a qualified title company and by purchasing your own title insurance.