Owner's Title Insurance: We've occasionally seen buyers come to the closing table and not purchase Owner's Title Insurance. While this insurance is not mandatory, it is highly recommended because it guarantees the validity of a title to real property. There are many possible defects in titles that may be so well hidden even the most careful examination will not discover them. Owner's Title Insurance protects your clients from financially devastating claims by others against their new homes. After all, those kinds of incidents gave birth to Owner's Title Insurance.
If the buyers decide not to purchase the insurance, so be it. But if you recommend they not buy it, and there is a title claim, you could potentially be liable because you acted in a professional capacity and gave advice that your client acted on.
Please make sure your clients understand what they're neglecting by not purchasing Owner's Title Insurance at the closing.
