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You should always have the title searched an ask for a title insurance policy. It seems that family transactions have more title issues than nonarmslength transactions. There are lots of situations that can cause a title issue and you should have a legal professional review the title.
It is always a safe solution to have a title policy with every transacdtion regardless of how long the property has been owned by an individual. You never know when someone may file a claim against a property. A title policy will protect you financially. It is a very small price compared to the protection it offers. I would strongly suggest always getting a title policy with every sale.
Getting a loan you have to. Even if you are buying and paying cash you would want to quarantee that your mom paid all the contractors that ever worked on the house. Someone could have put a lien on it and she never knew. It is a small price to pay for piece of mind. Good luck.
There is always a need for a title policy. You want to make sure no one else has any claims or liens against the property before you put it into your name.
My answer to people I am working with is a resounding YES. The small price of the title policy pales in comparision to the problems you can have if something comes up that you could have covered in the policy. Title policies not only cover the property from liens, they cover boundary disputes with neighbors, tax liens that show up from past owners, etc. Having a good Title Insurance Policy lets you sleep at night knowing that when you sell the property it will be insured against perils that could show up from prior owners that the previous title reviewer missed in thier research of the title and now are your problem if you don't have the title insurance policy. The lenders Title Policy does you no good whatsoever, it only covers the LENDER, and not you. So if something does show up, the lender will be paid in full and you could still lose your property. Just buy the insurance and sleep at night knowing you have the coverage. It is a small price to pay for the coverage.
Per the other answers below, if you are getting a loan then you will not have a choice. You can ask your escrow officer to run a preliminary title report to check if there are any liens or easements that family members may not be aware of. If it looks clean then you can judge whether the cost of the title insurance policy has value to you in your situation.
Per the other answers, if you are getting a loan then you have no choice. You can ask for a preliminary title report from your escrow agent just to ensure that there are no unexpected liens or recorded easements on the property that the family members may not be aware of. If you find nothing of note, and the transfer is not with a lender, then the title insurance policy fee might not be worth the value of the policy to you.
if you are getting a loan on the home, your lender will require a lenders policy. you dont have a choice. if you are paying cash, it's up to you. title transfers aren't the only thing a policy is insuring. city, tax and mechanical liens are just a few of the things to be concerned about. however, if this a family property, you may have less concerns about all those issues.
Are you buying the property, or is the title being transferred to you? If you are buying, and using a lender for your purchase, your lender will require a title policy.