Buyer Form

The below examples are provided for information purposes only and are not to be considered or substituted for legal advice.

SOLE OWNER: An undivided interest by one person with no other party having a right or interest in or to the Property.

TENANTS BY THE ENTIRETY: An undivided interest by a married couple, with the right to the entire property passing to the surviving spouse upon the death of one (1) spouse.

JOINT TENANTS: An equal ownership interest by all parties named on the deed with rights of ownership vesting in the survivor of all owners.

Example: Andy, Beth and Charles own Blackacre one-third (1/3) each. If Beth dies, Andy and Charles will each own one-half (1/2) of Blackacre.

TENANTS IN COMMON: An individual ownership interest in a portion of the Property (either equal or unequal) with another party and sharing a common interest and right to use as to the whole. Tenants in Common does not provide for survivorship rights. Thus, a will is recommended to identify the recipient of the ownership interest upon the death of one of the owners.

Example 1: Andy, Beth and Charles own Blackacre. Beth owns seventy percent (70%), Andy owns twenty percent (20%), and Charles owns ten percent (10%). Charles dies. Charles had a will which states that his interest should pass to his mother, Charlene. Charlene now owns a ten percent (10%) interest in Blackacre. If Charles dies without a will, his ten percent (10%) interest shall pass in accordance with the laws of the jurisdiction in which the property is located.

Example 2: Andy and Beth are married but own Blackacre with Charles. Andy and Beth own a sixty percent (60%) interest in Blackacre, which they hold as Tenants by the Entirety. Charles owns a forty percent (40%) interest in Blackacre. As between Charles and the unit made up of Andy and Beth, the parties own Blackacre as Tenants in Common, forty percent (40%) to Charles and sixty percent (60%) to Andy and Beth jointly.

Notice is hereby given that in connection with a loan to be secured by a mortgage/deed of trust on the above property, your lender is requiring issuance of a title insurance policy, which policy will provide protection ONLY to the lender.

You are hereby notified of your right and opportunity to obtain simultaneously with said lender’s title insurance policy an owner's title insurance policy designed to insure you as to the status of your title. Such owner's policy will be issued in the amount of the total purchase price.

The owner's policy will be subject only to the contingencies and conditions contained in the binder, title report and policy. You have the right to review a sample of the form of policy in which said exceptions and exclusions will appear.

A comparison between Basic and Enhanced Owners coverages can be found here.

The owner's policy will not be effective until its issuance after the requirements contained in the commitment issued to the mortgagee have been met and payment made of the applicable premium.

I/we hereby acknowledge receipt of this Notice, prior to the disbursement of any funds, and I/we do hereby make the following election with regard to an owner's title insurance policy (choose one):