Title Insurance Myths That Could Cost Your Clients

Debunking Common Misconceptions for Realtors and Lenders

debunking title insurance myths

Title insurance is often misunderstood, which can lead to costly mistakes. Here are three myths we hear most often—and the truths you can share with your clients:

Myth 1: “New Construction Doesn’t Need Title Insurance.”

Even brand-new homes can carry hidden liens from contractors or suppliers.
Reality: Title insurance protects against unrecorded easements, misfiled deeds, and construction-related claims.

Myth 2: “The Previous Owner’s Policy Protects the Next Buyer.”

An owner’s policy only covers the person who purchased it.
Reality: Each new owner needs their own policy to be protected.

Myth 3: “Cash Deals Don’t Require Title Work.”

Skipping title insurance to “save money” is a risky gamble.
Reality: Liens, boundary disputes, or fraud can still cloud the title—and cash buyers have even more to lose without lender oversight.

Your Takeaway: Educating buyers and sellers on these myths sets you apart as a trusted advisor and keeps transactions moving smoothly. The Title Link team is always ready to explain coverage details or provide quick quotes to help you close with confidence.

Let’s connect! info@thetitlelink.com // 239-423-5465
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