NLIC.org

Sonia Said:

If i dont have a mortgage....do i still need a title insurance?

We Answered:

You are not required to get it, but you should. Title insurance protects you from any errors that were made in the past regarding the title of the property. For example, if you are buying a home on land that was once a farm that has now been subdivided. A long-lost heir comes forward and says that they still have a legal claim to the land. With title insurance, the insurance company would pay to fight that claim. Without title insurance, you're on your own. It's cheaper to get the insurance that it would be to pay an attorney to represent you.

Just a note about getting a survey as well. If you do not get a survey, your title insurance won't cover any encroachments that may come up at a later date. Go ahead and pay for the survey and make sure that no one is encroaching on the property or that you're not encroaching on anyone else's property.