When is a "Statement of Information" typically requested in real estate transactions?

When is a "Statement of Information" typically requested in real estate transactions?

• A. To estimate tax obligations
• B. To verify a seller’s identity and provide details for title insurance
• C. To record transaction history
• D. To assess property market trends

Answer: (B)

A "Statement of Information" is primarily requested to verify a seller's identity and provide important details necessary for title insurance during real estate transactions. This document plays a critical role in the title search process, which is designed to ensure that the property being sold is free of any liens or claims that could affect the transaction. It helps in confirming the seller's legal right to sell the property by providing personal information that allows title companies to check the seller's identity against public records. While estimating tax obligations, recording transaction histories, or assessing property market trends are important aspects of real estate, they do not directly relate to the role of the "Statement of Information" in facilitating a smooth transaction by ensuring the integrity of the title. Hence, the primary focus on identity verification and title insurance makes this choice the most appropriate answer.

A "Statement of Information" is primarily requested to verify a seller's identity and provide important details necessary for title insurance during real estate transactions. This document plays a critical role in the title search process, which is designed to ensure that the property being sold is free of any liens or claims that could affect the transaction. It helps in confirming the seller's legal right to sell the property by providing personal information that allows title companies to check the seller's identity against public records.

While estimating tax obligations, recording transaction histories, or assessing property market trends are important aspects of real estate, they do not directly relate to the role of the "Statement of Information" in facilitating a smooth transaction by ensuring the integrity of the title. Hence, the primary focus on identity verification and title insurance makes this choice the most appropriate answer.