What could be a consequence of not having title insurance?

The consequence of not having title insurance primarily revolves around the potential for financial loss resulting from undiscovered title defects. Title insurance protects property owners and lenders from any defects or issues with the title to the property that might arise after the purchase. These defects could include liens, disputes over property boundaries, or claims from previous owners. If these issues are discovered after the purchase and title insurance was not obtained, the buyer could face significant financial burdens trying to resolve them, leading to substantial financial loss.

The other choices relate to property taxes or assessments but do not directly connect to the primary risk associated with title ownership. For instance, tax rates or property value assessments may change for various reasons, but they are not tied to the title's validity or the protection that title insurance provides against hidden flaws.