What is the obligation of a title agency if a buyer does not request an owner’s policy?

The correct choice emphasizes the title agency's responsibility to inform the buyer about the risks associated with not having an owner’s policy. If the buyer does not request an owner’s policy, the title agency is obligated to provide written notice regarding the lack of coverage from the Loan Policy, which is crucial for the buyer's understanding of their potential exposure to risks.

This is important because an owner's policy protects the buyer's equity in the property and shields them from certain legal claims or defects in title that may not be covered under a lender's policy. By providing this notice, the title agency ensures that the buyer is fully informed of the coverage limitations and can make an educated decision regarding their insurance options.

In cases where an owner’s policy is not obtained, it's critical for the title agency to communicate these ramifications clearly, highlighting the importance of owner-specific coverage. This not only fulfills the agency's duty to the buyer but also protects the agency itself from future liability claims if issues arise related to the title after the property purchase.