What is the main purpose of title insurance?

The main purpose of title insurance is to protect against claims and defects in the title. This involves safeguarding the policyholder against potential issues that may arise regarding ownership of the property. These could include problems such as undisclosed liens, fraudulent transactions, or any claims made by third parties asserting rights over the property.

Title insurance provides assurance that if an issue arises that impacts the owner's rights, the insurance will cover the financial losses associated with that claim, including legal costs to resolve disputes. This security is particularly important because it addresses risks that are often not known at the time of purchase and that could undermine the value of the property or the buyer's rights as an owner.

Thus, the function of title insurance is essential in real estate transactions, ensuring that buyers can move forward with confidence regarding their ownership of the property.