Which of the following options is true about title insurance policies?

Title insurance policies serve a critical role in real estate transactions by protecting property owners and lenders from potential claims against the title of the property. This protection extends to various issues that might arise, such as past liens, ownership disputes, or any unidentified claims that could threaten the rightful ownership of the property.

The primary function of title insurance is to ensure that the title to a property is clear, thereby providing peace of mind to the buyer that they possess legal ownership free of unexpected challenges. This protection is foundational in real estate transactions, making the assertion about it guarding against claims on ownership accurate. It highlights the importance of verifying the legitimacy of ownership and references the need for comprehensive coverage against unforeseen legal challenges related to the property's title.

In contrast, the other options don’t reflect the essential nature of title insurance. While it is true that title insurance is often viewed as optional, this perspective does not apply universally, especially for buyers who want to protect their investment. Regarding a sale price, title insurance does not guarantee a specific price; its focus is entirely on the title itself, not financial aspects. Lastly, the idea that title insurance is only necessary for commercial properties is incorrect, as both residential and commercial transactions benefit from title insurance to secure ownership rights.