What is the primary function of title insurance?

The primary function of title insurance is to insure against past ownership problems. This means that title insurance provides protection to property buyers and lenders from issues that may have arisen before the purchase, such as liens, encumbrances, or disputes over property boundaries. Title insurance ensures that the buyer receives a clear title to the property being purchased, which is crucial for securing ownership rights.

By covering issues that may not be discovered during the title search process, title insurance offers peace of mind to the insured parties. If a problem does arise, the title insurance company will cover legal fees associated with resolving ownership disputes, which addresses potential concerns that might impact the buyer’s or lender's investment.

The other options do not represent the primary function of title insurance. For instance, while legal fees may be covered under specific circumstances, that is not the main purpose of title insurance. Protecting against future market changes and guaranteeing property tax payments are also outside the scope of title insurance coverage.