What does title insurance guarantee?

Title insurance primarily serves to guarantee the validity and accuracy of the title search. When a title company performs a title search, it investigates public records to identify any potential issues with the property’s title, such as liens, encumbrances, or ownership disputes. Title insurance protects the buyer (and lender, if applicable) against any undiscovered defects in the title that could arise after the sale is completed. This insurance covers legal fees and other costs associated with rectifying any issues that were not found during the title search, thus ensuring that the buyer has clear ownership of the property.

The other options do not pertain to the specific guarantees provided by title insurance. For instance, while the completion of the sale is essential, it is not something that title insurance covers directly; rather, it involves the contractual obligations between parties. Resale value and property condition are also important aspects of property ownership but do not fall under the purview of title insurance, as these factors can fluctuate based on market conditions and maintenance, which are unrelated to title issues.