Owner’s title insurance is not mandatory in Tennessee, 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 Tennessee, the cost of owner’s title insurance is typically negotiated between the buyer and the seller. In some cases, the buyer may agree to pay for the entire cost of owner’s title insurance, while in other cases, the costs may be split.