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Ambassador
4,582,242
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

As Ryan Huggins - Thousand Oaks, CA says a lender will require it, and  title insurance is smart even when a loan is not involved. Carol Williams has a good story.

Mar 07, 2019 10:49 AM
Rainmaker
1,901,261
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

I see no risk purchasing  title insurance. The risk of not purchasing it could be as simple as $5,000 worth of stupid to replace a lost abstract. I'm saying this out of experience being that was one document (the abstract) that we lost in the flood. Thank God we had title insurance or we would have been on the hook for $5,000. to have a new one built using our neighbors abstract.

Mar 07, 2019 11:39 AM
Rainmaker
684,915
Peter Testa
Nationwide Homes - Danbury, CT
PETER TESTA

I wouldn't advise anyone do that but the risk is purchasing a property with a clouded title & inheriting those problem liens. 

Mar 07, 2019 10:49 AM
Rainmaker
1,738,513
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

There are several risks involved but let me tell you a personal story.  My husband and I purchased a small orchard next to our home so we wouldn't be at the mercy of whatever a developer wanted to put there.  When we sold our home and the property next door, we discovered (through a new title search) that there was a $10,000 sellers debt that was never cleared when we purchased the property.  If we hadn't had title insurance we would have had to pay that $10,000 debt (that wasn't ours) in order to sell our property.  NEVER forego purchasing title insurance.

Mar 07, 2019 10:47 AM
Rainmaker
991,615
Doug Dawes
KW Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Example...my sister purchased a condo, years ago. It underwent a title search then and came back clean. She refinanced twice with no issues. When she refinanced the 3rd time all of a sudden a cloud was found from before she purchased the unit. Thankfully she had title insurance which took care of the repair

Mar 07, 2019 04:38 PM
Rainmaker
911,486
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

The biggest risk is that someone else will assert that they hold a prior ownership position or prior lien on the subject property. It could be expensive to resolve if you win and worse if you loose.

If financing is needed to buy the property, the lender will not fund a loan that does not included a title policy to protect their collateral. There fore, no title insurance, no purchase.

Mar 07, 2019 11:21 AM
Rainmaker
1,387,778
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

It's not an option if you get a mortgage.

Mar 07, 2019 10:32 AM
Rainmaker
895,525
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Knowing what you bought and whether or not who you're buying it from has the right to sell it to you, for starters.

Mar 07, 2019 01:44 PM
Ambassador
5,413,483
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

Interesting question......

Mar 07, 2019 12:14 PM
Rainmaker
529,565
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

Just Don't Do It ... Wrong Move ... Not Worth all the Risks.  Don't Even Think About It. 

Mar 07, 2019 11:31 AM
Rainmaker
4,122,153
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

What difference would that make... unless you are paying cash, it's a requirement/condition of final approval for a mortgage.

Mar 07, 2019 10:58 AM
Rainmaker
5,591,480
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Ryan Huggins - Thousand Oaks, CA gave you the answer.  A

Mar 07, 2019 10:43 AM
Rainmaker
508,283
Susie Kay
Ultra Real Estate Dallas Fort Worth - Plano, TX
North Dallas Specialist

I don't think you can get away with it as the lender requires it.  Even on a cash transaction you need to have clear title.  I actually recommend purchasing extra coverage, just in case.  

Mar 07, 2019 07:04 PM
Rainmaker
1,519,451
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

You do have an option of not buying it if you pay cash or get it as a gift. TI allows the new homeowner to have free and clear ownership of the house or property.

Mar 07, 2019 03:15 PM
Rainmaker
1,707,423
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Big ones, grasshopper.

Mar 07, 2019 02:34 PM
Rainmaker
4,046,379
Richard Weeks
Dallas, TX
REALTOR®, Broker

There could be a lien, or some claim on ownership to the property.

Mar 07, 2019 12:28 PM
Rainmaker
2,024,200
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Sleepless nights 

Mar 07, 2019 11:47 AM
Rainmaker
6,613,253
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Possible financial losses if fraud or title errors are discovered.

Mar 07, 2019 11:05 AM
Rainmaker
1,925,314
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Great question for your local real estate attorney. 

Mar 08, 2019 05:34 AM
Ambassador
4,259,392
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Oh, the horror stories! It's a must, whether you're obtaining a mortgage or paying cash.

Mar 07, 2019 09:25 PM
Rainmaker
4,214,037
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Once the chain of insured title is interrupted it can be difficult to obtain. Lenders require it and a cash buyer is foolish without it!

Mar 07, 2019 03:06 PM
Rainmaker
5,571,934
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

the risks could be that you purchased a home with a title that NEEDED to be insured to cover problem.... the attorney who certified title could be dead... can't sue the dead!!!

Mar 07, 2019 02:03 PM
Rainmaker
2,642,262
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

If a lien real or not surfaces...you bought it. With Title Insurance they buy it

Mar 07, 2019 01:30 PM
Rainmaker
1,640,186
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West - Carlsbad, CA
Presence, Persistence & Perseverance

Countless

Mar 07, 2019 12:29 PM
Ambassador
3,758,192
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

I have at least 12 clients over 20 years that can answer your question. They saved a boat load of money when title failed to find errors or omissions...

Mar 07, 2019 09:07 PM
Rainmaker
1,154,075
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

There is no choice. But assuming that is the case don't you think you get sued not having the protection.

So you are still at school? When you plan to take the test.

All the best.

Mar 07, 2019 06:18 PM
Rainmaker
4,943,909
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Don't have a choice in CO.

Mar 21, 2019 02:12 PM
Rainmaker
3,985,875
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I had a deal that went 3 years and $50,000 to fix.

Mar 11, 2019 06:57 PM
Rainmaker
4,017,105
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

I believe most mortgage company would insist on it

 

Mar 09, 2019 09:42 AM
Ambassador
3,058,272
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

The risk is just not making wise decisions. 

Mar 09, 2019 08:17 AM
Rainer
318,050
Caroline Gerardo
Sun West Mortgage Corporation - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

Tax man takes it away. Lender forecloses. Maybe the guy doesn't own it to sell? County or city red tags and condems. Judgement takes property. Angry people show up and evict you. Can't get a loan.... just a few

Mar 08, 2019 02:00 PM
Rainmaker
4,799,501
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

The potential of losing your home.

Mar 08, 2019 06:27 AM
Rainer
326,822
J.R. Schloemer, CRS
Kentucky Select Properties - Louisville, KY

I always ask my clients, "how many banks do you know that are going out of business?" They always respond with, "none". So I tell them the bank makes them purchase lenders title insurance for the bank, so wouldn't it be your best interest to purchase Owner's Title Insurance for yourself.  I haven't had any not purchase it.

Mar 08, 2019 05:53 AM
Rainmaker
522,941
Greg Cremia
Shore Realty of the Outer Banks - Nags Head, NC

It guarantees you actually have title to the house.

Mar 08, 2019 05:42 AM
Rainmaker
543,259
Greg Large
ERA Real Solutions - Grove City, OH
A Tradition of Trust

There are multiple risks but the biggest one IMO would be not owning the property you thought you did.

Mar 08, 2019 04:28 AM
Rainmaker
455,290
Buzz Mackintosh
Mackintosh REALTORS - Frederick, MD
“Experience, reliable, leadership”

I have run into title issues many times over the years. The owners who had the insurance were thankful they did. I'm currently in the middle of a title issue w/ a tract of land where the owner doesn't have title insurance and the legal bills are eating into the Seller's equity.

Mar 08, 2019 03:46 AM