What is the primary purpose of title insurance?

The primary purpose of title insurance is to protect against losses arising from title-related matters. When a property is purchased, title insurance ensures that the buyer is safeguarded against potential issues related to the property's title. This includes problems such as undiscovered liens, claims of ownership, or errors in public records that could affect the buyer’s legal rights to the property.

Title insurance is crucial because it helps provide peace of mind to homeowners and lenders by ensuring that no previous owners or other parties can successfully challenge their ownership of the property after the purchase. This protection is essential for the integrity of real estate transactions, allowing parties to proceed with confidence knowing that they are covered against certain legal challenges regarding their title.

While other options mention aspects related to real estate, they do not directly pertain to the specific role of title insurance in protecting property ownership rights and resolving title defects.