Often a buyer that is purchasing with cash, in Oklahoma, does not purchase Title Insurance.  This sometimes comes as a surprise to our out- of-the-area buyers.

Oklahoma is an abstracting state.  Most of the time the seller in the transaction is paying to have the abstract brought up to date subsequent to the date on the purchase contract. Then the abstract goes to the attorney of choice for the buyer.

In Oklahoma the Title Insurance Policy is written based upon the Attorney's Opinion.  Just about everyone gets an attorney's opinion on the abstract which gives his/her opinion as to whether there is good and marketable title.  Title issues should come become evident to the buyer by his attorney's opinion.  Title flaws are normally the responsibility of the seller to correct unless the buyer accepts the property with the title problems.

So many cash buyers do not purchase title insurance and many that borrow through local banks do not purchase title insurance. 

Title insurance can supply you with some peace of mind in your purchase but it's a new idea to many Oklahomans that have always done their financing through local banks which normally do not require title insurance. 

I'm not advising one way or the other, simply stating what often is the choice of cash buyers and why it's often their choice.

It's always a good idea to ask about the total cost of certain decisions in any transaction.  Title insurance cost estimates can be supplied to you by your title insurance agent.  Those cost estimates should include any additional final abstracting, etc that must be done.

I have been told that some closing agents will not close a transaction unless the purchaser does buy title insurance, so that must be weighed into your decicision also.

One of the recent changes in Oklahoma came in 2007 which allows a title insurance policy to be based upon a supplemental abstract if that supplemental abstract goes back to the prior owner's issuance of title insurance.  Prior to this time the complete base abstract had to be read each time that a title policy was issued.

It's always a good idea to ask questions.  Ask your real estate agent... ask your lender... ask your closer... ask, ask, ask.  About all aspects of your purchase.  Then you can make informed decisions and hopefully the right decision for you.

I always like to see my clients take steps to help protect themselves whether it's title insurance or a home inspection, using a licensed real estate professional, or a reputable lender.  A home purchase is usually a large monetary transaction, so be careful and weigh your decisions carefully.