Title insurance is required for the mortgage companies in all sales I have been involved with in South Carolina.  It is not required however for the buyer, I do suggest they take it just in case though as years back there were problems in SC over deeds and the Catawba Indians. 

I didn't realize until just recently though that in our state title insurance can be reissured.  No one wants to tell you this because if they issue new insurance it is more money.  I am not sure if this is a fact in all states or just SC, but it sure opened my eyes.

Christine,

Just to ease the pain a bit...title insurance is charged one time---at closing---and remains in force as long as the buyers or their heirs own the property...never a renewal fee.

If there was an error made in the 'title search' (and humans run title searches), the owner is still protected against title related issues!

There is no 'law' requiring a person to obtain title insurance, but most lenders require it and even on a cash transaction, the owner would want to protect their high level of equity in the property!

Hope this helps! Thanks,   Fran