Some states require that in any purchase-mortgage transaction when only a loan policy has been ordered, a notice be given to the buyer in regard to the availability of an owner's title insurance policy for an additional charge. Several states make this requirement as a matter of statute and have promulgated forms which are to be used. The American Land Title Association form designated as ALTA Notice of Availability of Owner's Title Insurance (1978) has been adopted by Stewart Title Guaranty Company.
The notice to be given by the Company to the buyer should identify the property, the amount of owner's coverage, and the additional cost. The buyer should indicate an affirmative or negative response. The notice and the buyer's response should be kept in the policy or escrow file.
When the transaction is to be closed by another party, the notice should be sent to the settlement agent for use. The notice should be retained in the settlement agent's file.
If the buyer refuses to sign the form, annotation should be made on the form that it was tendered and refused and the form retained in the file.
Notice Of Availability Of Owner's Title Insurance
STEWART TITLE GUARANTY COMPANY
Notice of Availability
of Owner's Title Insurance
To: ___________________________ Date: _________________
Buying property identified as: ______________________________________________________________________
A Mortgagee's Policy of title insurance insuring the title to the property you are buying is being issued to your mortgage lender, but the policy does not provide title insurance coverage to you.
You may obtain an Owner's Policy of title insurance which provides title insurance coverage to you. The additional cost to you for an Owner's Policy of title insurance is in the amount of $__________________ is $______________, if you request it at this time.
If you are uncertain as to whether you should obtain an Owner's Policy of title insurance, you are urged to seek independent advice.
Stewart Title Guaranty Company
____ I/We do request an Owner's Policy of title insurance.
____ I/We do not request an Owner's Policy of title insurance.
Date: _________________ Buyer: ____________________
(ALTA Notice of Availability of Owner's Title Insurance-1978)