What is the purpose of title insurance?

The purpose of title insurance is primarily to protect against losses that may arise due to defects in the title to real property. This includes issues that might not be discovered during the title search process, such as liens, ownership disputes, or claims from previous owners. Title insurance provides assurance to the policyholder that their ownership of the property is secure, and it also covers legal fees that may arise when defending against such title claims. By ensuring that the title is clear from unforeseen problems, title insurance plays a crucial role in real estate transactions, offering peace of mind to both buyers and lenders. This protection is essential because it safeguards the significant investment made in the property, making it a central feature of real estate transactions.