Cash deal; title insurance requirements

[Lisa Gergets]

I am buying a five-acre parcel of raw land with cash. The cash is being lent to me via a personal loan through a friend. I will have a written contract with him, but the land itself will not be mentioned, nor is the loan to me going to be a lien on the land.

The title insurance requirements state that they need to know anyone who will have an interest in the land, i.e. the person who is lending me the money to buy the land. But since the land will be unencumbered by the loan, I think this requirement is moot. The land will be owned free and clear by myself...the personal loan is happening behind-the-scenes.

What would you say to the title company in this situation? 

I also have an old judgement that was the result of a collection. Title company is requiring this to be paid off, I'm assuming because they're thinking there will be another lien holder, and of course, they want that lien holder to be in first position.

If I am paying cash, is this not also a moot requirement?

If this becomes an issue, can I not just buy the property in the name of my business, which is an LLC?