What is the primary purpose of title insurance in real estate transactions?

The primary purpose of title insurance in real estate transactions is to protect buyers and lenders from title defects. Title insurance is designed to safeguard against financial loss resulting from issues related to the property's title, such as ownership disputes, unpaid liens, or improper recording of previous ownership.

When a buyer purchases a property, they obtain title insurance to ensure that they have clear and marketable title to that property. This insurance provides a level of security, as it covers legal costs and potential losses that may arise from any claims against the title that were not discovered during the title search process conducted before the purchase.

In contrast, the other options do not align with the primary function of title insurance. Financing options relate to how buyers fund their purchase, which is unrelated to title issues. Property taxes are typically the responsibility of the property owner, and ensuring they are paid falls outside the scope of title protection. Additionally, while property inspections are important for identifying the physical condition of a home, they do not address legal title matters or provide the protective coverage offered by title insurance. Thus, option B accurately encapsulates the essential role of title insurance in real estate transactions.