What is one key benefit of obtaining title insurance?

Obtaining title insurance provides a significant advantage in safeguarding against legal claims to property ownership. This protection is crucial as it ensures that the policyholder will be defended against disputes that may arise, such as claims from unknown heirs, errors in public records, or fraudulent signatures. If any issues come forward concerning the title after the purchase of the property, title insurance covers the legal costs involved in resolving these claims, ensuring that the property buyer has a secure and undisputed ownership.

This benefit stands out because it addresses one of the most essential aspects of real estate transactions: clear and marketable title. Without title insurance, buyers could face financial loss if a claim were to arise, potentially jeopardizing their investment or ownership rights.

Other options either do not reflect the primary function of title insurance or involve aspects that are not consistently true in all cases. For instance, while lenders often do require title insurance to protect their interests, it is not universally mandatory for all buyers. Similarly, title insurance does not influence property taxes, nor does it guarantee that the home is free of defects, which falls outside its purview. Hence, the benefit of protection against legal claims is the central focus of title insurance.