What is one of the primary goals of title insurance?

One of the primary goals of title insurance is to ensure clear ownership rights. This fundamental purpose is essential in the context of real estate transactions, as title insurance protects buyers and lenders from any disputes or defects that may arise regarding ownership of the property. Title insurance provides a guarantee that the title is free from any encumbrances, liens, or claims, which is crucial for ensuring that the property can be transferred without legal issues. By confirming that the seller has the right to sell the property and that the title is valid, buyers gain peace of mind, and lenders can confidently provide financing.

While reducing property taxes, assisting in real estate investment, or providing a market for claims may have relevance in certain contexts, they do not represent the primary function of title insurance, which is focused squarely on safeguarding ownership rights and ensuring the buyer’s interests are secure in a real estate transaction.