Which of the following is a condition where title insurance may be beneficial?

The indication that title insurance may be beneficial arises in situations where there is a heightened risk of undisclosed issues affecting the property’s title. In the case where the buyer is adding structures to the property without an RPR (Real Property Report), title insurance serves as a protective measure against any potential claims or defects in the property title that could arise due to these additions.

When structures are added to a property without an RPR, there may be risks related to compliance with local zoning laws, potential encroachments, or unreported liens. An RPR confirms the boundaries of the property and any improvements made, but without it, uncertainties persist. Title insurance can help alleviate concerns by protecting the buyer from potential defects or challenges that could surface later due to these unverified additions.

In contrast, an updated RPR provides an accurate representation of the property and typically signifies that the boundaries and existing structures are in order. The fact that the property is in a commercial zone does not directly relate to the need for title insurance unless there are specific concerns about the zoning that affect the title. Similarly, a personal preference for an RPR over title insurance does not demonstrate a situation where title insurance itself is needed, since the two serve different purposes in the real estate transaction process