What is the primary function of title insurance?

The primary function of title insurance is to protect against losses due to defects in the property title. Title insurance safeguards parties involved in a real estate transaction from potential issues that may arise with the ownership of the property. This includes problems such as liens, claims, or defects in the title that were not discovered during the title search process prior to closing. If a title issue arises after the purchase, title insurance covers the legal fees, costs, and any losses incurred as a result of the defect, ensuring that the new owner has clear ownership of the property.

While other options touch on aspects related to real estate, they do not directly pertain to the core purpose of title insurance. Facilitating quicker property sales is more about the efficiency of the transaction process rather than protection against ownership issues. Ensuring property taxes are paid relates to tax obligations of the owner, not the title itself. Providing homeowner's warranty coverage focuses on the condition of the property rather than its title. Therefore, the role of title insurance is specifically centered on safeguarding against title-related risks.