What is the main function of title insurance?

What is the main function of title insurance?

• A. To facilitate the sale of the property
• B. To insure against future claims to the title
• C. To protect the lender's investment only
• D. To provide legal advice in transactions

Answer: (B)

The main function of title insurance is to insure against future claims to the title. Title insurance provides coverage for possible defects or issues related to the property's title that may arise after the policy is issued. This means that if a claim related to the title comes up, such as a disputed ownership or an undisclosed lien, the title insurance company will defend against that claim and potentially cover the financial losses associated with it. Title insurance protects both buyers and lenders by ensuring that their interests in the property are secure from unexpected claims that could jeopardize ownership or marketability. Unlike other types of insurance which cover future events, title insurance specifically addresses past issues that could affect the future use or ownership of the property, making it a crucial element in real estate transactions.

The main function of title insurance is to insure against future claims to the title. Title insurance provides coverage for possible defects or issues related to the property's title that may arise after the policy is issued. This means that if a claim related to the title comes up, such as a disputed ownership or an undisclosed lien, the title insurance company will defend against that claim and potentially cover the financial losses associated with it.

Title insurance protects both buyers and lenders by ensuring that their interests in the property are secure from unexpected claims that could jeopardize ownership or marketability. Unlike other types of insurance which cover future events, title insurance specifically addresses past issues that could affect the future use or ownership of the property, making it a crucial element in real estate transactions.