Home & Garden

Paying With Cash Here’s Why You Need Title Insurance Regardless

Paying cash for a new home simplifies matters a great deal. If you can manage it, you’ll probably want to do it. Not every new homeowner can do it, but if you’re one of the lucky ones, the current owner will likely be pleased to do business with you.

As part of the purchase process, you’ll get the title of your new home transferred to you. If you’re paying cash, you might feel like title insurance is a waste of time.

You’ll find that’s not the case, though, as Sunnyside title companies would be happy to tell you. Even if you’re paying cash for your property, not getting title insurance can backfire in a major way. We’ll discuss that in detail right now. 

What is Title Insurance?

First, let’s make sure you understand this term. Title insurance is insurance that you get when you buy a new house. It’s optional. There’s no law that states you need to get it.

Title insurance is an upfront, one-time expenditure. That insurance protects you if anyone ever shows up making a claim of ownership regarding the property you thought was yours, free and clear.

Title Insurance Protects You from Problems with the Seller

If you pay cash for your home, you don’t have to worry about a mortgage and financing, which will certainly speed things along. Just because you’re paying cash, though, that does not mean you’ve studied the details of this property’s history.

You assume the person who says they have a right to sell it can legally do so. But what if there’s a lien on the property that the seller is trying to conceal?

That’s not unheard of, and if you get title insurance, part of what you’re paying for is a guarantee that you are actually eligible to buy the property outright from the seller. The insurance company will do the necessary research to ensure no one else has a claim on that property. This way, no one will show up later and get you into a lengthy and potentially costly legal entanglement.

How Else Does Title Insurance Help You?

Title insurance protects you in situations where a married couple is trying to sell you the property, and both of their names are on the title. It protects you when a previously unknown heir shows up, saying the property is legally theirs. It protects you from any heirs born after a will probate period.

You might not be thrilled with paying for title insurance since you’re doubtless already spending a great deal of money on the property. Simply put, though, even if you’re paying cash, not getting title insurance can prove disastrous. 

If you don’t get it, that’s a needless risk on your part. Getting this type of insurance guarantees there won’t be any issues regarding ownership once you’ve done all the paperwork and the money has changed hands. It’s a safeguard of your future happiness while living at this house, and that’s something that any new homeowner wants. 



Welcome to the Night Helper Blog. The Night Helper Blog was created in 2008. Since then we have been blessed to partner with many well-known Brands like Best Buy, Fisher Price, Toys "R" US., Hasbro, Disney, Teleflora, ClearCorrect, Radio Shack, VTech, KIA Motor, MAZDA and many other great brands. We have three awesome children, plus four adorable very active grandkids. From time to time they too are contributors to the Night Helper Blog. We enjoy reading, listening to music, entertaining, travel, movies, and of course blogging.

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