What is one way in which a buyer can protect against financial loss due to title defects?

Purchasing title insurance is a fundamental way for a buyer to protect against financial loss due to title defects. Title insurance provides coverage for issues related to the ownership of the property that may not be discovered during a title search, such as undisclosed liens, claims, or errors in public records. By obtaining this insurance, the buyer is safeguarded from potential legal costs and financial claims arising from defects in the title that could arise after the transaction is complete.

This proactive measure allows the buyer to have peace of mind, ensuring that if any title issues surface after closing, the title insurance will cover the costs associated with correcting the problem, including legal fees. It essentially serves as a financial safety net against unforeseen title complications.

Whereas homeowners insurance typically protects against losses due to damages to the home or property, it does not cover title issues. Requesting repairs from the seller or conducting a property appraisal may address different concerns but do not directly offer protection against financial loss due to title defects.