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Why do buyers need title insurance. Without a title insurance policy, there is no protection for the buyer. Any hidden problems not disclosed by public records or a mistake in tile examination might hold the buyer accountable for any prior issues relating to the property.y definition, title insurance is A policy issued by a title company after searching the title and which insures against loss resulting from defects of title to a specifically described parcel of real property or from the enforcement of liens existing against it at the time the policy is issued.
Of course, the buyer. cannot make a claim under the policy unless it negotiated. the necessary coverage when the title company first issued. the policy. If a client is borrowing money to finance a purchase, the. lender will have its own additional requirements for the loan. policy of title insurance.