What is a potential consequence of not having title insurance?

The answer "loss of property due to ownership disputes" highlights a significant risk associated with not having title insurance. Title insurance protects property owners and lenders from potential losses that may arise from disputes related to the ownership of a property. Without this protection, a property owner could face legal challenges claiming that someone else has rights to the property, either due to previous liens, unrecorded deeds, or other issues that were not disclosed at the time of sale.

In the worst-case scenario, these disputes could lead to the loss of the property altogether, where courts could recognize the claims of the other parties, resulting in the original owner being forced to vacate the property. Title insurance acts as a safeguard against these unpredictable issues, offering financial protection and peace of mind.

The other options do not appropriately reflect the direct risks tied to the absence of title insurance. While factors like property value, taxes, and mortgage rates are significant in real estate transactions, they are not direct consequences of not having title insurance. Instead, the absence of title insurance primarily exposes owners to legal complications over ownership, making the potential for loss due to ownership disputes the most relevant and serious consequence.