Upon receipt of an offer to purchase, what must a licensee recommend to the buyers?

When a licensee receives an offer to purchase, one critical recommendation for buyers is to obtain title insurance. This insurance serves as a form of protection for the buyer and lender against any potential disputes regarding property ownership, ensuring that the title is clear and providing coverage against losses from various issues, such as liens or encumbrances that may not have been revealed during the property search.

Title insurance plays an essential role in real estate transactions because it gives buyers confidence in their ownership rights. Without it, buyers risk facing unforeseen claims against the property's title, which could lead to significant financial loss or legal complications.

While obtaining a home warranty, hiring an attorney, or conducting a home appraisal may also be beneficial steps in the purchasing process, they are not universally required or as critical in protecting against issues with the title itself, which is the primary focus when an offer to purchase is made. Therefore, recommending title insurance is a prudent measure that addresses a foundational aspect of real estate transactions.