Which statement best explains the reason for checking the title upon receipt of title documents?

• A. To verify boundary measurements
• B. To check for any incumbrances
• C. To confirm what the seller will convey and that they can transfer
• D. To confirm the mortgage balance

Answer: (C)

The main idea here is to confirm exactly what the buyer is getting and that the seller actually has the right to transfer it. When you look at the title documents, you’re checking who owns the property and what interests pass with it—the legal estate, whether it’s freehold or leasehold, and any rights, covenants, or restrictions that affect what can be conveyed. This ensures the seller can transfer the title described in the contract and that nothing in the title would prevent completion or alter what the buyer is purchasing.

Boundary measurements are more about plans and surveys than the title itself, and while encumbrances and mortgage details matter, the essential purpose of reviewing the title on receipt is to verify conveyability and the exact scope of the seller’s interest that will pass to the buyer.