What is the primary purpose of obtaining title insurance?

The primary purpose of obtaining title insurance is to protect the insured from past events affecting property ownership. Title insurance serves as a safeguard against issues that may arise due to defects in the title, such as undisclosed liens, gaps in the chain of title, or ownership claims from prior owners. These issues typically stem from historical events that occurred before the current owner obtained the property. By securing title insurance, the insured is financially protected if a claim against the title arises, thereby ensuring their ownership rights over the property.

While other options touch on relevant aspects of real estate transactions, they do not encapsulate the main function of title insurance. Coverage for future lawsuits may be addressed through different types of insurance, mortgage financing focuses on securing loans rather than ownership rights, and tax coverage is generally handled separately before the sale, rather than through title insurance itself.