Determining the existence of encumbrances on real estate is a crucial step in property transactions. These encumbrances, often representing debts or obligations, can significantly affect the transfer of ownership and the value of the asset. For example, a contractor who performed work on a house but was not paid may file a claim against the property, creating a legal claim until the debt is settled.
Establishing the presence or absence of such claims provides critical financial protection and ensures a clear title. Historically, the process involved laborious manual searches through public records. Now, with advancements in technology and digitized record-keeping, the investigation can be more streamlined and efficient, leading to quicker and more informed decisions regarding property acquisition or financing.
