What is a common reason for obtaining title insurance?

Obtaining title insurance is primarily focused on protecting the property owner and lender against any future title disputes that may arise. Title insurance provides a safeguard by ensuring that the title to the property is clear and that the owner has the legal right to it. This can include issues such as undiscovered liens, claims of ownership by others, or errors in public records. Should any disputes occur regarding the title after the purchase, title insurance can cover legal expenses and potential losses, making it a crucial aspect of real estate transactions.

Other options, while potentially relevant to the broader context of real estate, do not encapsulate the primary purpose of title insurance. For example, expediting loan approval is largely based on the lender's assessment of creditworthiness and financial history rather than title insurance. Similarly, title insurance does not directly impact property value; property value is influenced by market conditions, location, and property features. Lastly, title insurance does not have any role in reducing loan payments, as that is governed by interest rates, loan terms, and the borrower's financial situation.