At what stage of a real estate transaction is title insurance generally purchased?

Title insurance is typically purchased at closing because this is the point in the real estate transaction where ownership of the property is transferred from the seller to the buyer. During the closing process, final documents are signed, and funds are exchanged. It is essential to secure title insurance at this stage to protect the buyer and the lender from any future claims against the property that could arise from issues related to the title, such as liens or encumbrances that were not discovered during the title search.

Purchasing title insurance at this stage ensures that the buyer has clear and marketable title to the property, guarding against potential legal problems that could affect their ownership rights. While other stages of a real estate transaction involve important activities, such as listing the property or conducting property inspections, title insurance specifically relates to the transfer of ownership that occurs at closing.