What must a broker advise a buyer to obtain regarding property transactions?

In property transactions, advising a buyer to obtain an abstract or a title insurance policy is crucial. This option emphasizes the importance of ensuring that the buyer has clear ownership of the property and that there are no liens or claims against it. An abstract of title summarizes the legal history of the property, while title insurance provides protection against future claims regarding disputed ownership or liens that could arise after the purchase. This safeguard is essential in real estate transactions as it protects the buyer's investment and provides peace of mind.

While obtaining a home inspection, credit report, or property appraisal is also important, they serve different purposes. A home inspection focuses on the condition of the property, a credit report assesses the buyer's financial eligibility, and an appraisal determines the property's market value. However, ensuring clear title ownership is a fundamental aspect of any property transaction, making the advice to obtain an abstract or title insurance policy critical in the buyer's decision-making process.