generally cost of owner’s title insurance policy paid for __ ___, but is ___.mortgagee’s policy of title insurance issued __ ___ on real property ensuring title “___ & ___”.
by seller – negotiableto lender – good – marketable
Generally, the cost of the owner’s title insurance policy is paid for by the property buyer, but it can be negotiated between the buyer and the seller during the home buying process. The owner’s policy is designed to protect the buyer’s investment in the property against any unexpected claims or defects in the title. This can include issues such as unpaid property taxes, liens, deed errors, or other ownership disputes.
On the other hand, the mortgagee’s policy of title insurance is typically required by the lender as a condition of the loan. It is issued to the lender to protect their collateral interest in the property and ensure that the title to the property is free and clear of any liens or encumbrances that could potentially affect the mortgage. The policy is issued at the closing of the transaction and covers the amount of the loan. It is a one-time payment made at the close of escrow.
The title insurance policies ensure that the title to the property is “good and marketable,” meaning that the ownership is free of any significant clouds or claims. This protects the buyer and the lender from any future issues that could arise regarding the property’s ownership or legal disputes related to the title.
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