What’s the point of Title Insurance if the property is being put up for sale and not just stolen and occupied? I have always seen it required when taking out a mortgage to purchase (even though it seems to be mostly unnecessary). Is Title Insurance a scam or are the buyers just paying cash and avoiding all that? Doesn’t make sense.
Most mortgages are sold in bundles on the secondary market.
That market has a bunch of “check the boxes” requirements and title insurance is one of those.
As I understand it the title insurance protects the buyer if the title is ever challenged—it does not protect the seller and would not be helpful if a future seller obtained the property by fraud.
(If someone has different info let us know.)