MA Notice of Availability of Owner’s Title Insurance

MA NOTICE OF AVAILABILITY OF OWNER'S TITLE INSURANCE

Issued by

STEWART TITLE GUARANTY COMPANY

Buyer’s Name (“You” or “Your”):                                                                      Date:
Buyer’s Mailing Address:                                                                                  File Number:
[Buyer’s E-mail Address:]
Address of Property (“Property”):  

Purchase Price:                                                    

A Loan Policy of Title Insurance (“Loan Policy”) only insures the lender.   Even though You pay for the Loan Policy, it does not provide title insurance coverage to You.

If You want the benefit of the protection afforded by a title insurance policy,  You must buy Your own policy, which is called an Owner’s Policy of Title Insurance (“Owner’s Policy”). 

An Owner's Policy is available with a coverage amount equal to the purchase price of the Property. An Owner’s Policy is purchased for a one-time premium and protects You for as long as You own the Property. Possible problems covered by an Owner’s Policy can include:

• Someone else claims to own an interest in Your Property;
• Someone else claims a lien on Your Property, including an unpaid lien for real estate taxes, a mortgage, a judgment, or an unpaid homeowner's association lien; or
• You do not have a legal right of access to Your Property.

Another benefit of Your Owner’s Policy is that the title insurance company will pay the cost of defending You if someone sues You for a risk which is covered under the Owner’s Policy.

A preliminary report or title insurance commitment issued in connection with the purchase of the Property is an offer to provide title insurance.  It is not a representation as to the condition of title, does not constitute an abstract of title, and does not provide You the protection of an Owner’s Policy.

If you are purchasing a 1-4 family residence which you intend to occupy You have the option of purchasing a policy which provides broader coverage than a basic Owner’s Policy.  This policy is called a Homeowner’s Policy of Title Insurance (“Homeowner’s Title Policy”).   Ask Your closing attorney for an explanation of the benefits of a Homeowner’s Title Policy so that You can decide which policy is the best one for You.

If You would like to review a sample of an Owner’s Policy or a Homeowner’s Title Policy, it will be provided to You on request.

The cost for an Owner’s Policy for this transaction, based on the Purchase Price, is as follows:

Basic Owner’s Title Insurance Premium: $____________

Homeowner’s Title Insurance Premium: $ ____________

Please note, as the closing attorney, our firm is also the agent of the title insurance company and will be issuing the title insurance policy to the lender, and if requested, a title insurance policy to You.  As the policy issuing agent, our firm will receive ______% of the title insurance policy premium. 

If You are uncertain as to whether You should obtain an Owner's Policy or a Homeowner’s Title Policy, You are urged to seek independent legal advice.

I/We [Buyer] do request: (check one)

            a Basic Owner's Policy

            a Homeowner’s Title Policy

                I/We [Buyer] decline an Owner's Policy and Homeowner’s Title Policy, if available. I/We [Buyer] understand and agree to accept the risks associated with this decision.

_____________________________________          ___________________________________
Buyer Name                                                                Buyer Name