There are many potential problems, some of which follows:
- The seller may not actually own the property being sold.
- There may be outstanding liens against the property.
- Back taxes may be unpaid.
- An ex-spouse may still have an interest in the property.
- Federal and State liens and suits, as well as forgery, may be exposed.
As Ronald Reagan once said, “Trust but Verify.” Your title policy is your verification when buying a home.