What role do public records play in title insurance?

Public records play a crucial role in title insurance primarily because they provide the legal foundation for property ownership. These records include deeds, mortgages, wills, and other relevant documents that establish how property ownership is transferred and what encumbrances may exist on the title. By examining public records, title insurers can identify potential claims or defects, such as liens or disputes over ownership, that could affect the buyer's rights to the property. This due diligence helps ensure that the buyer receives clear title, free of any unforeseen issues, thereby protecting their investment in the property.

Moreover, while zoning information, buyer identification, and property valuation are important aspects of real estate, they are not the direct focus of title insurance. Title insurance is specifically designed to address issues related to legal ownership and claims that may arise from historical or current records associated with the property.