What is one risk associated with not having title insurance?

The correct choice highlights a significant risk tied to ownership of property without having title insurance. When a buyer purchases real estate, they need assurance that the title is clear and free from claims or disputes. Without title insurance, there's a possibility that previous owners or other parties may contest the ownership rights. This could stem from various issues such as undisclosed liens, claims from heirs, or errors in public records, which can lead to costly legal battles to defend one's ownership.

Legal challenges can arise unexpectedly and can be complex and expensive to resolve. Title insurance serves as a safeguard in these situations, offering protection against such risks and ensuring that the owner has clear title to their property. This protection is crucial for maintaining ownership and avoiding financial loss associated with legal disputes.

Other options provide less relevant risks. For example, losing property use for recreational purposes or dealing with future property taxes, while concerning, do not directly stem from the issues title insurance addresses. Similarly, an increase in property market value is generally a positive outcome and not a risk associated with the absence of title insurance.