What is the primary role of title insurance when it comes to property transactions?

The primary role of title insurance in property transactions is to protect against financial loss resulting from title defects that may arise after a property is purchased. This coverage includes issues such as unrecorded liens, fraud, or errors in public records that could affect ownership rights. Title insurance serves as a safeguard for buyers and lenders, ensuring that they have financial recourse if any claims against the title arise. In this way, it provides peace of mind and facilitates smooth transactions by ensuring that unforeseen issues do not lead to significant financial setbacks for the insured party.

The other options relate to aspects of property transactions but do not encapsulate the primary purpose of title insurance. Guaranteeing accuracy of property descriptions, authenticating deeds, or providing legal advice are important functions in the overall process of real estate transactions, but they do not specifically address the core protective function that title insurance provides against unexpected financial losses arising from ownership disputes or claims.