What is the function of a Title Insurance policy?

A Title Insurance policy serves the critical function of protecting property owners and lenders against potential defects in the title of the property, as well as claims or disputes that may arise regarding ownership. This protection is vital because it covers issues that may not be discovered during the title search process, such as hidden liens, fraud, or errors in public records. By safeguarding against these risks, Title Insurance ensures that the buyers can confidently complete their real estate transactions, knowing that they have recourse if any title-related problems emerge after the purchase.

The other options do not accurately represent the core function of Title Insurance. For instance, while financial backing for land purchases is important, that is typically the role of a mortgage lender rather than Title Insurance itself. Additionally, assessing property taxes is the responsibility of local tax assessors and has no connection to Title Insurance policies. Similarly, enforcing zoning laws is a matter handled by local government authorities and is not related to the protections offered by Title Insurance.