There is massive exposure to you from mechanic's liens, as well as possible encroachment and previous title issues from when the property was only land.
With no lender you stand alone facing these issues, and it is beyond foolhardy to not have it in your situation.
When you buy a property you want to know that previous liens and challenges to your sole ownership of the property post-closing will be remedied without your having to spend money should they surface after you close.
Title insurance makes sure that not only do you have clear title but that future issues with title are handled for you as well.
You could theoretically buy without title insurance but unless you're literally being given the deal of a lifetime and have done your due diligence I think you are taking an unnecessary risk.
Liens against the property that a Seller himself may not be aware of.
Many times liens get recorded late, inspire of best efforts on the part of
First off, it is the seller - the Grantor - who pays for title insurance. A warranty deed is a guarantee, and a guarantee has no value without financial backing, which is why we back our warranty deeds with title insurance.
Plus, if you are paying cash, then it's all YOUR money on the line. Could there be mechanic's liens, survey issues, problems with the chain of title? And if there are, do you really think you can go back to Buildem-Fast LLC for compensation?
While title insurance is not required, I feel it is a very bad idea not to obtain it.
Title insurance will protect you against any mechanics liens, defects, etc. against the â€œtitleâ€ (your property). You would be penny wise and pound foolish in the end if you did not purchase it.
Manuel Brown, Broker
Here is some general information that may assist you in making your decision: https://www.ctic.com/whatistitle.aspx
Rusty A. Payton, Broker
1225 W Morse
Chicago, Illinois 60626