What is the primary benefit of title insurance for residential property buyers?
Correct Answer
B) It protects against title defects and certain legal issues
Title insurance protects property owners against financial loss from title defects, liens, encroachments, and other legal issues that may not be discovered during the title search. It provides coverage for legal costs and financial losses related to title problems.
Why This Is the Correct Answer
Title insurance is specifically designed to protect property buyers and owners against financial losses arising from title defects, liens, encroachments, easements, fraud, and other legal issues affecting property ownership. It covers legal costs and compensates for financial losses when title problems emerge that weren't discovered during the initial title search, providing essential protection for one of the largest investments most people make.
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