Do I Need Title Insurance in Maryland? What Every Worcester County Buyer Should Know
Buying property in Ocean City or anywhere in Worcester County, Maryland is a major investment — and one that should never be completed without proper legal protection. One of the most misunderstood aspects of the real estate process is title insurance, particularly the difference between lender’s coverage and owner’s coverage.
From a title attorney’s perspective, the question is not whether title insurance matters — it’s whether you are willing to accept the risk of owning property without it.
When working with Peter S. Buas, a local real estate attorney practicing with Williams, Moore, Shockley & Harrison, LLP, buyers receive attorney-led title examinations and settlements designed to protect ownership rights from contract to closing. Learn more about attorney-led closings on the Real Estate Settlements page.
What Does a Title Examination Actually Protect You From?
Before any real estate closing, Peter S. Buas oversees a detailed title examination of the property. This legal review of public land records confirms that the seller has the authority to transfer ownership, and that no hidden problems exist that could threaten your rights as the buyer.
A proper title examination looks for:
- Unpaid mortgages or liens
- Outstanding judgments against prior owners
- Unpaid property taxes or assessments
- Errors in prior deeds or legal descriptions
- Easements or restrictions limiting property use
- Claims tied to estates, divorces, or bankruptcies
In Worcester County, title problems frequently arise from estate transfers, family conveyances (the transfer of property, such as land or a home, from one family member to another, often as a gift or inheritance), older vacation properties, and investment homes with long ownership histories. Attorney oversight ensures these issues are resolved before closing, not after a problem surfaces.
For additional background on common real estate issues and how they are handled, visit the General Real Estate Matters page.
Lender’s Title Insurance vs. Owner’s Title Insurance
Many buyers assume that because their lender requires title insurance, they are fully protected. That assumption is incorrect. What’s the difference between lender’s title insurance and owner’s title insurance?
Lender’s Title Insurance
- Required by mortgage lenders
- Protects only the lender’s interest
- Provides no protection to the buyer
Owner’s Title Insurance
- Protects your ownership rights
- Covers legal fees and financial losses from covered title defects
- Remains in effect for as long as you or your heirs own the property
While owner’s title insurance is not mandated by Maryland law, Peter S. Buas strongly recommends it as a critical safeguard,particularly in Worcester County and Ocean City transactions where title histories are often complex.
Answers to common buyer questions about title insurance and settlements can also be found on the FAQs page.
Common Title Risks for Ocean City and Worcester County Buyers
Local real estate presents unique challenges that make owner’s title insurance especially important, including:
- Properties previously owned by deceased individuals without proper probate
- Family transfers completed without corrective deeds
- Old liens paid but never released in the land records
- Condominium or HOA-related title defects
- Errors in older coastal or waterfront legal descriptions
Even the most thorough title examination can’t uncover every possible issue. Forged documents, undisclosed heirs, and recording errors often surface years after closing — which is precisely why owner’s title insurance exists.
What Happens If You Decline Owner’s Title Insurance?
Buyers who decline owner’s title insurance are required to sign a waiver and assume responsibility for future title claims.
This means:
- You pay out-of-pocket legal fees if a claim arises
- You absorb the financial loss if ownership is challenged
- You carry all risk associated with defects you did not create
From an attorney’s standpoint, declining owner’s title insurance transfers all risk to the buyer — a decision that frequently proves costly long after closing day.
Title Insurance and Estate Planning Are Closely Connected
How you take title insurance to property affects future estate administration, probate exposure, and asset protection. Property may be held:
- Individually
- As tenants by the entirety
- Jointly with rights of survivorship
- In a trust or business entity
Peter S. Buas regularly advises clients on proper title vesting to ensure real estate ownership aligns with long-term estate planning goals. Errors in vesting can result in unnecessary probate proceedings, creditor issues, or unintended inheritance outcomes.
A Real Estate Attorney’s Perspective: Title Insurance Is Risk Management
Owner’s title insurance is not an optional add-on — it is risk management for one of your most valuable assets. It is a one-time premium that protects against legal and financial consequences long after the transaction is complete.
For buyers in Ocean City, Worcester County, and across Maryland’s Eastern Shore, working directly with Peter S. Buas ensures that title issues are handled with legal precision and that ownership rights are protected at every stage of the transaction.
Contact Peter S. Buas, Esq.
Peter S. Buas, Esq.
Real Estate Attorney | Title & Estate Planning Lawyer
Practicing with Williams, Moore, Shockley & Harrison, LLP
Ocean City, Maryland
If you are buying property in Worcester County or anywhere on the Eastern Shore, contact Peter S. Buas to ensure your title — and your investment — are fully protected.
👉 Schedule a consultation through the Contact Page