Why is an Opinion of Title significant in real estate transactions?

An Opinion of Title is significant in real estate transactions primarily because it verifies the seller's ownership. This legal document is typically provided by an attorney who examines the title history of the property and concludes whether the seller has valid ownership and the right to sell the property. This verification is crucial for buyers, as it reassures them that the seller is indeed the rightful owner, which helps in avoiding conflicts or disputes over ownership after the sale.

The other options, while related to aspects of real estate, do not directly pertain to what an Opinion of Title specifically addresses. It does not guarantee that the property is free of liens; that would typically require a more extensive title search or title insurance. Assessing market value is a separate process involving appraisals and market analysis. Confirming zoning compliance involves reviewing local regulations and permits, which is not covered under an Opinion of Title. Thus, the primary focus of an Opinion of Title is on verifying ownership, making it an essential component of real estate transactions.