Owner’s title insurance is not mandatory in Nebraska, but it is highly recommended for FSBO transactions. This type of insurance protects the seller from financial losses if there are any defects or hidden issues with the property’s title after the sale has been completed. These issues can arise from various sources, such as forged documents, undisclosed heirs, or liens that were not properly recorded.
In Nebraska, the cost of owner’s title insurance is typically paid for by the seller at closing. However, it is possible to negotiate with the buyer to split the cost.