What is the primary purpose of title insurance?

The primary purpose of title insurance is to ensure the buyer has a clear title to the property. This is crucial in real estate transactions, as it protects the buyer from any potential legal issues related to property ownership that may arise after the purchase. Title insurance investigates the history of the property in question to confirm that it is free of liens or claims that could impede the buyer's rights to the property. This insurance provides peace of mind, as it covers the costs of defending against any claims on the title and compensates the insured if a covered defect arises that affects the ownership of the property.

This clear title assurance helps facilitate smoother transactions and provides the buyer with protection against unforeseen challenges, making it a fundamental aspect of the real estate buying process.