What is the primary purpose of title insurance?

The primary purpose of title insurance is to protect against defects in title or claims against property. This type of insurance provides coverage for various issues that may arise regarding the ownership of the property, such as disputes over ownership, clerical errors in public records, or liens that were not disclosed during the transaction. By securing this insurance, the buyer gains peace of mind knowing that they are protected against future claims that could affect their rightful ownership of the property.

Other options do not accurately reflect the primary function of title insurance. While property taxes and the value of the property are important considerations in real estate transactions, they are not the focus of title insurance. Title insurance does not ensure that property taxes will be paid or guarantee that a property's value will appreciate over time. Additionally, it does not relate to the ability to make improvements on a property, which typically would require permitting and compliance with local regulations. Therefore, the correct understanding of title insurance lies in its role as a safeguard against potential legal issues related to property ownership.