What is the aim of title insurance?

The aim of title insurance is primarily to protect against unknown claims on a property title. This type of insurance is crucial in real estate transactions because it guards the property owner and the lender against potential defects in the title that were not discovered during the title search. These defects could include issues such as outstanding liens, fraud, or claims from previous owners.

When a title insurance policy is issued, it provides a guarantee that the title to the property is clear of any defects and will defend the insured against any claims that may arise. This protection is vital because it helps ensure that the new owner can enjoy full ownership without the threat of legal challenges to their property rights stemming from past transactions or undisclosed issues.

In the context of the other options, securing a mortgage for buyers refers to financing rather than title protection, assisting lenders in underwriting loans involves analyzing creditworthiness rather than the title, and providing legal advice is not a function of title insurance; instead, it is the role of an attorney. Thus, the purpose of title insurance distinctly revolves around safeguarding property rights against unforeseen claims.