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The need for title insurance is typically indicated when a buyer is using a mortgage to finance the purchase. This situation arises because a mortgage lender requires title insurance as part of the financing process to protect against potential defects in the title that could affect the lender’s security interest in the property.

Title insurance safeguards both buyers and lenders from claims or legal issues that may arise due to liens, encumbrances, or disputes regarding ownership that occurred prior to the purchase. When a mortgage is involved, the lender has a vested interest in ensuring that the property title is clear and that there are no undiscovered issues that could result in financial loss or difficulty in enforcing the mortgage.

In contrast, purchasing a new property without a loan poses lower risk from a lender's perspective, as there is no third-party financial interest involved. Not working with a real estate agent or planning to stay in the property long-term does not directly correlate with the need for title insurance, as the focus is primarily on ensuring the clarity of the title to protect any financial investment, particularly with financing in place.