Which of the following best describes the purpose of title insurance?

The purpose of title insurance is primarily to protect the lender, and sometimes the owner of the property, against defects in the title that could arise after the purchase of the property. Title insurance provides coverage for unforeseen issues like liens, claims, or encumbrances that may not have been discovered during the title search prior to the property transaction. This protection is crucial because such defects can lead to legal disputes over property ownership and ultimately result in financial loss.

Title insurance typically covers risks like fraud, clerical errors, unpaid taxes, and other issues that may affect the validity of the title. By having title insurance in place, lenders can reduce their risk when issuing mortgages, ensuring that they retain their investment even if unexpected title issues surface after the transaction is completed.

In contrast, the other options do not accurately reflect the role of title insurance. Marketing support for real estate agents relates to promotional activities, not title coverage. Home repairs and appreciation in property value pertain to the condition and financial aspects of the property, but they do not involve legal protection concerning ownership and rights associated with the title.