What is the primary purpose of title insurance?

The primary purpose of title insurance is to ensure clear title to real property. This form of insurance protects property buyers and lenders from potential issues that may arise with the ownership of the property. These issues could include undisclosed liens, claims against the property, errors in public records, or other title defects that could affect ownership rights. By securing title insurance at the time of a real estate transaction, the involved parties ensure that they are protected from financial loss due to these potential title issues, providing peace of mind and safeguarding their investment in the property.

Other options relate to different aspects of real estate and property ownership but do not pertain directly to the primary function of title insurance. For example, protection against property taxes is managed through different means, like the assessment and payment of those taxes, rather than title insurance. Covering construction defects falls under builders' warranties or homeowners' insurance, not title insurance. Likewise, providing warranties for real estate agents does not align with the role of title insurance, which is focused entirely on issues concerning property title security.