Massachusetts Real Estate License Practice Test 2025 – Complete Exam Prep

Title insurance is designed specifically to protect a buyer against any title issues that may arise after the purchase of a property. This type of insurance addresses potential problems related to the property's title, such as claims of ownership, liens, or other encumbrances that were not discovered during the title search before the sale. If any such issues surface after the transaction is completed, title insurance can provide coverage for legal fees and any settlements associated with these claims, ensuring the buyer can maintain ownership of their property free from such disputes.

The other types of insurance mentioned serve different purposes. Mortgage insurance protects lenders against the default of a homeowner, homeowner's insurance covers damages to the property itself from hazards, and liability insurance protects against legal claims due to injuries or damages on the property involving third parties. None of these cover title-related issues in the same comprehensive manner as title insurance does.