Law Offices of Scott M. Syat, P.C. | (617) 773-3500
It’s a question we hear often:
“Do I need owner’s title insurance if I’m buying property from a family member?”
After all, the property has been in the family for decades. You trust the seller. The title history seems clean. So why pay for something you probably won’t use?
Here’s the reality: even family property can have hidden title issues, and title insurance is your safety net when things go wrong.
🔍 What Could Possibly Go Wrong?
Even the most well-intentioned family transaction isn’t immune to problems. Some common issues that owner’s title insurance could protect you from:
Undischarged mortgages that were never properly released from 30 years ago
Clerical or recording errors in past deeds, even ones done by lawyers
Missing heirs or relatives who weren’t properly included in a past inheritance
Boundary disputes with neighbors that weren’t documented
Improperly executed past documents, such as deeds signed without proper witnesses or notary
Unpaid taxes, betterment assessments, or municipal liens you didn’t know about
And if your family member inherited the property? The risks increase, especially if the estate was not fully probated or other heirs may still have claims.
⚖️ But the Title Company Does a Title Search… Isn’t That Enough?
A title search finds existing issues. But what about undiscovered or future claims? That’s where owner’s title insurance steps in—it protects you after the closing, sometimes years down the road.
Without it, you could be left to defend a lawsuit or pay out-of-pocket to fix a defect in your chain of title.
💡 It’s a One-Time Premium That Lasts As Long As You Own the Property
Owner’s title insurance is paid once at closing—and it protects your ownership for as long as you or your heirs own the home. If something goes wrong, the policy covers your legal defense and any financial loss (up to the purchase price, or more with an enhanced policy).
đź“ť Our Take
Even when buying from your parents, your aunt, or a sibling—title insurance is worth it. Your family may trust each other, but mistakes in past recordings, probate processes, or municipal filings don’t discriminate.
And remember: if someone brings a claim years from now, you’ll be the one dealing with it—not the family member who sold it to you.
đź“ž We Can Guide You Through the Process
At the Law Offices of Scott M. Syat, P.C., we review title, recommend the right coverage, and explain it in plain English. If you’re buying family property—or any property—we’ll make sure you’re protected.
Call us at (617) 773-3500 to discuss your purchase and title insurance options.