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When paying cash for a new home, there are no regulatory laws that providing that you MUST purchase Owner's Title Insurance. However, an Owner's Policy protects you against liens and title defects that might have occurred during previous ownerships. A comprehensive title examination should always be performed to support the title policy.

What if the builder of your new home never paid off a mechanic's lien against the property and it was never paid? Liens affect the property, not the previous owner. If the builder refused to pay the lien amount after the closing took place, you would have to either sue the builder or pay the lien and then sue the builder. If you had an Owner's Policy, the title insurance company would be required to defend the claim in court - all for the one-time fee you paid for the policy.

It is a low cost, one-time fee insurance that is in effect for the lifetime of your ownership, whether you own the property for 1 year or 100.

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โˆ™ 2014-10-15 15:17:25
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Q: Do you need title insurance if you are paying cash for a brand new home?
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