Why check your title for incumbrances upon receipt of title documents?

• A. To verify boundary measurements
• B. To identify incumbrances and determine the appropriate title guarantee
• C. To confirm what the seller will convey and that they can transfer
• D. To check the mortgage balance

Answer: (B)

The main idea is that title documents are reviewed to spot anything that burdens the property and could affect the buyer’s rights or value. Incumbrances are claims or interests—like mortgages, charges, easements, or restrictive covenants—that attach to the title and can limit how the land is used or transferred. By identifying these early, you can determine what protection the buyer needs, i.e., the appropriate title guarantee, and decide what steps might be required to deal with or insure against those encumbrances before completion.

So the best answer is that you identify encumbrances and determine the appropriate title guarantee. Boundary measurements relate to plan accuracy, not encumbrances; mortgage balance is just one possible encumbrance and doesn’t capture the broader purpose of the check; and confirming what the seller will convey is part of the contract, not the primary reason for checking encumbrances on title documents.