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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.
a an owner s title insurance policy guarantees that the buyer has the right to the property it usually covers the cost of any legal fees that arise if you have to defend your claim the cost is based on the price of the property title insurance is issued for a one time fee usually due when you are closing or settling the real estate transaction insurance benefits are paid only to the name that is on the policy coverage lasts as long as you hold title to the property