Can you sell a house without title insurance? The short answer is that might be possible in some cases. It is possible to do so if it is a cash sale or no money is involved. However, these cases are quite rare. Even if it is possible to do something, it does not mean that it is the best choice. In fact, it may be far from it. Selling a house without title insurance carries critical risks that can affect the validity of the deal. It is not wise to embrace such a critical risk just to avoid a small one-time fee (title insurance). It is much better to pay a small fee (title insurance) than to risk losing a huge amount of money by way of a defective title to the property.

sell house without title insurance

Possible Title Issues

Many homeowners do not realize it, but there are many issues that adversely affect the title to your property. For instance, a contractor can impose a lien on the property for outstanding bills. Or you might purchase the house together with your spouse and if you get divorced, it will not be immediately clear how much share your ex has in the property.

Mandatory Cases

There may also be situations where you cannot sell your house without title insurance. If the buyer is financing the purchase of the property through a mortgage, then the lender will demand title insurance. This is a necessary safeguard for lenders because with title insurance in place, no one can legally challenge their right to foreclose the property. Title insurance is, thus, crucial for mortgage firms and lenders because they can foreclose the property without challenge when such a situation arises and recover their funds.

Title insurance is necessary since the service provider carries out an extensive search to find out about any lien or claim against your property that you may not be fully aware of. Some liens include property and income taxes.


Title insurance is also necessary for the new owner since it protects them and their lenders against any property claims that can jeopardize their legal ownership of the property. It is possible that some property issues might arise before the property ownership is passed on to the new owner. Title insurance can protect the new owner against such adverse circumstances.

Title insurance also gives you assurance that all paperwork necessary for closing the deal has been completed. With title insurance, you can rest assured that all of your paperwork is in place and that signatures from all parties to the deal have been taken.

Peace of Mind

Besides providing such important benefits, the amazing thing about title insurance is its affordability. Unlike other insurance benefits, you do not have to pay high premium amounts every month or so. With just a nominal one-time payment that is a small fraction of the deal, you can rest assured that the property deal is valid when you have title insurance in place. You will not have to face the pain of litigation that is often the case with defective property titles.

Looking for title insurance from a reliable and experienced firm?

CALL JD Title & Escrow @ 239.984.5028