A CONSUMER GUIDE TO TITLE INSURANCE
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Maryland Insurance Administration • 800-492-6116 • www.insurance.maryland.gov
But since the purchase of the owner’s policy is typically not required as a condition of the loan and is listed as
optional, it is disclosed as a service the borrower did shop for. If the buyer buys simultaneous title insurance
(buying an owner’s policy at the same time a lender’s policy is purchased), the settlement sheet will include the
simultaneous issue charge (i.e. the charge for the lender’s policy and the owner’s policy together). The sample
Closing Disclosure forms on the Consumer Financial Protection Bureau’s website, http://www.consumerfinance.
gov/owning-a-home/closing-disclosure/, show how these charges will appear on your Closing Disclosure.
Maryland law requires the title company to notify buyers in writing of their right to purchase an owner’s policy,
and to view a sample copy of the policy. The buyer must also indicate whether or not owner’s title insurance
is desired and sign the “Statutory Notice” form. This form is required when a real estate transaction involves
a purchase money deed mortgage or deed of trust, unless it is a purchase money mortgage granted solely to
acquire an interest in or to carry on a business or commercial enterprise, or any purchase money mortgage
granted to any business or commercial organization.
If you elect to purchase an owner’s policy, the MIA strongly recommends that you also review a sample copy of
the policy, including a review of all exceptions listed on the policy. The settlement agent can direct you to the
proper portion of the policy. (Providing the buyer with a copy of the title insurance commitment also satisfies
the requirements of this statute.) This is important because it allows a purchaser to verify if there are any
exceptions, restrictions, encumbrances or other matters not covered by the owner’s policy.
Note that the title company is not required to separately notify buyers of any exceptions and their impact upon the
purchase of the property. However, if a buyer asks, the title company may explain any exceptions in the policy.
ADDITIONAL QUESTIONS ABOUT BUYING A HOUSE AND SETTLEMENT PROCEDURES
Additional information regarding buying a house and settlement procedures can be found on the Consumer
Financial Protection Bureau’s (CFPB) website at http://www.consumerfinance.gov/. The CFPB provides helpful
information regarding loan options, as well as information about the closing process. Please review their
section on mortgages at https://www.consumerfinance.gov/know-before-you-owe prior to applying for a loan
and choosing a settlement or title agency. This site provides a sample Loan Estimate and a sample Closing
Disclosure as well as many other tools to assist you in the loan and closing process. You can also learn more
about buying a house on the Department of Housing and Urban Development’s website, https://www.hud.
gov/topics/buying_a_home.
ADDITIONAL QUESTIONS ABOUT BUYING A HOUSE
The Maryland Insurance Administration has only the authority to regulate the business practices of the
title insurance producers and title insurance companies. The majority of producers and insurers follow the
insurance laws and regulations; however, from time to time, problems arise after a settlement is conducted.
Examples include the failure to pay off a prior mortgage, other lien or encumbrance; record the deed, deed
of trust, mortgage or mortgage release; charge and collect the appropriate premiums; issue the title insurance
policies; and provide copies of legal documents to the buyer. In other cases, there may be a theft of escrow
funds or a falsification, or forgery of closing documents. If you believe that anything like this has occurred,
please contact the Maryland Insurance Administration’s Enforcement Tip Line at 410-468-2200 or toll free at
1-800-492-6116 and ask to speak to an enforcement officer in the Market Regulation & Professional Licensing