Hawaii Real Estate State Practice Exam

In a real estate transaction, the title company is responsible for preparing the title report. This report is essential for establishing a clear understanding of the property’s title history, including any encumbrances or liens that may exist. The title company conducts a thorough examination of public records to verify the property’s ownership and any claims against it.

The title report is an important document that helps ensure that the buyer receives clear title to the property, which means they are not assuming any hidden problems or disputes regarding ownership. The involvement of the title company adds an additional layer of professionalism and accuracy to the process, as they specialize in title issues.

In contrast, while the seller's agent and buyer's agent play significant roles in the transaction overall, their primary focus is on representing their clients' interests rather than handling the legal aspects of title verification. Similarly, the escrow officer manages the transaction process and ensures that the funds and documents are appropriately exchanged at closing, but they do not prepare the title report. Thus, the title company's role is specifically linked to the creation of the title report in a real estate transaction.