In a purchase transaction where a Loan Policy is required, what must the title agency do if the buyer does not request an owner's policy?

In a purchase transaction where a Loan Policy is required, if the buyer does not request an owner's policy, the title agency must provide written notice on an approved form to the purchaser. This is necessary because the owner's policy offers important protections to the buyer that are not covered by the loan policy. The written notice serves to inform the buyer of the option for an owner's policy as well as the implications of not obtaining it.

This requirement ensures that buyers are aware of their rights and the coverage (or lack thereof) they will have regarding title issues. Proper documentation in writing also provides a clear record that the buyer was informed, which is important for both legal and professional accountability within the title industry. Thus, the title agency's obligation to notify the buyer in this manner helps protect both the buyer and the agency by ensuring informed decision-making.