Oregon Real Estate Practice Test 2025 – Complete Exam Prep

The primary function of title insurance is to protect against defects in the property title. This means that title insurance provides coverage for potential issues that may arise with the ownership of the property, such as unknown liens, encumbrances, or claims by other parties that could jeopardize the buyer’s ownership rights. When purchasing real estate, it is crucial for buyers to have assurance that the title is clear and that they have a legal right to the property without facing unforeseen claims.

Title insurance is important because it addresses problems that could occur after the purchase, including errors in public records, fraudulent signatures, or undisclosed heirs. By securing title insurance, buyers obtain a form of financial protection that helps ensure their investment is safe and their ownership of the property is secure. This coverage stays in effect for as long as the insured has an interest in the property, providing a long-term safeguard against potential title issues.