While owner’s title insurance isn’t mandatory, we super recommend  investors purchase an owner’s title insurance policy to protect against any potential financial loss should there be an title issues. Things like identity theft, liens and judgments recorded just before closing, and mistakes made by the clerk of court. None of those would show up on a title exam and any of them could could be financially catastrophic to an investor. Imagine buying a house for cash just to find out later that your seller came to closing with a brand-new and undisclosed six digit federal tax lien? How do you feel about paying that out of your pocket?

And it doesn’t matter if you’re planning on holding title for more than a year or less than a day. Once you’re an owner, you’re on the hook for any potential title issue in the chain. That’s why title insurance is so important.

In fact, many of our investor clients would never think of purchasing a property without getting a title insurance policy to protect them. Neither would Clark Howard or Dave Ramsey.