When is title insurance necessary or advisable?

Updated March 13, 2023.

Marketable title is title that is free from observable title objections. Insurable title is title that, while it may not be free of title objections, an insurance company has considered the title risks to be so remote or small as to be willing to assume certain financial obligations which would arise if the title issues became a problem. Title insurance is necessary in order to transfer property where all title problems cannot be resolved and marketable title cannot be provided. Title insurance is advisable in all cases, as it provides additional financial protection to a buyer, even with respect to marketable title (as is further illustrated by the answer to the next question).

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