What is the primary function of title insurance?

The primary function of title insurance is to protect against liens or ownership disputes. When a person purchases property, title insurance provides financial protection against any potential problems that could arise with the property’s title. This includes issues such as undiscovered liens, claims of ownership from others, or other defects in the title that could affect the buyer's rightful ownership.

If a dispute arises over who truly owns the property or if there are any unpaid debts attached to the property (liens), title insurance helps cover the legal costs associated with resolving these issues. This protection is vital because it assures the buyer that they are purchasing a property with a clear and marketable title, reducing the risk of unforeseen legal complications in the future.

While other options mention concerns related to property, they do not pertain to the primary role of title insurance. For instance, repair costs associated with the property fall under homeowners insurance rather than title insurance. Profit from property sales is driven by market conditions and is not guaranteed by title insurance. Similarly, title insurance does not have any function related to property taxes.