Who benefits from the title insurance policy?

The property buyer and their lender are the primary beneficiaries of a title insurance policy. This policy serves to protect them in the case of any disputes over ownership or defects in the title that could arise after the property has been purchased. For the buyer, title insurance ensures they have clear ownership of the property, free from unforeseen claims or liens. For the lender, it provides assurance that their investment is secure and that the title is valid, minimizing the risk of loss if a title issue were to surface.

This dual protection is essential in real estate transactions since both the buyer and lender have significant financial stakes in the property. While real estate agents and title insurance companies play critical roles in the transaction, the policy itself is designed primarily to safeguard the financial interests of the buyer and their lender against potential title defects.