How does title insurance protect property buyers?

Title insurance serves a crucial function in real estate transactions by safeguarding against defects in title. This is essential for property buyers, as it offers protection from various issues that may not be immediately apparent during the due diligence process. For instance, unresolved liens, undisclosed heirs, or errors in public records could all affect ownership rights. Title insurance provides financial protection and peace of mind by covering legal costs and losses if a claim arises against the title after the purchase is finalized.

In contrast, the other options do not accurately describe the role of title insurance. It does not cover repair costs of the property or guarantee that the property's value will appreciate over time, nor does it provide temporary housing in the event of disputes relating to the title. The key aspect of title insurance is its focus on ensuring that the buyer has clear and marketable title to the property, free from encumbrances that could affect ownership rights.