What is the primary purpose of title insurance?

The primary purpose of title insurance is to protect against claims on property ownership rights. Title insurance serves as a safeguard for property owners and mortgage lenders by covering potential losses arising from defects in the title that were not discovered during the property title search. These defects could include issues such as previously undisclosed liens, encumbrances, or claims of ownership from other parties. By providing this protection, title insurance helps ensure that the property owner has clear and undisputed ownership, making it a vital component of real estate transactions.

While legal assistance in property disputes, facilitating mortgage lending, and compliance with zoning laws are important elements of real estate transactions, they are not the primary focus of title insurance. Instead, the core role of title insurance is to address uncertainties and potential claims related to property title, offering peace of mind to buyers and lenders alike.