What does a title search involve in the context of appraisals?

A title search is a critical component in the appraisal process that focuses on verifying the legal ownership of a property. This involves examining public records, such as deeds, tax records, and any liens or encumbrances that may be associated with the property. By conducting a thorough title search, appraisers can confirm who holds the legal title to the property, ensuring that there are no disputes over ownership that could affect the appraisal or future transactions.

This process is essential because it helps to establish the property’s clear title and protects both the buyer and the lender from potential legal issues in the future. Confidently knowing who owns the property allows for a more accurate and valid appraisal, reflecting true ownership in market value assessments.

On the other hand, estimating property value based on improvements focuses on the physical aspects and enhancements made to the property rather than its ownership. Evaluating the environmental impact deals with external factors that affect property valuation rather than the ownership record. Determining market trends pertains to broader economic conditions rather than the specifics of legal title. Each of these options highlights different aspects of the appraisal process, but only examining public records directly pertains to the title search itself.