Yes, it is highly recommended to purchase title insurance when selling or buying property in Kentucky, including FSBO transactions. Title insurance protects both the buyer and the seller from financial losses due to title defects, which are errors or problems with the legal ownership of the property. These defects can arise from various sources, such as forged documents, undisclosed heirs, or liens that were not properly recorded. Title insurance can reimburse the insured for legal fees, losses, and damages if there are any problems with the property’s title.
In Kentucky, the cost of title insurance is typically paid for by the buyer at closing. However, it is possible to negotiate with the seller to split the cost.
Here are some of the benefits of purchasing title insurance in Kentucky:
- Protection against financial losses: Title insurance can reimburse you for legal fees, losses, and damages if there are any problems with the property’s title.
- Peace of mind: Knowing that you have title insurance can provide peace of mind and protect your investment in the property.
- Faster closing process: Title insurance can expedite the closing process by ensuring that the title is clear and free of encumbrances.
Title insurance is a worthwhile investment that can safeguard your financial well-being and protect your property rights. Consult with a real estate attorney or title insurance agent to discuss your specific needs and determine the appropriate level of coverage.