Yes. An Owner’s Policy is optional, however, by opting out or waiving the right to the insurance coverage, a property owner or homeowner may face unforeseen losses and expensive legal fees.    Why You Need Owner’s Title Insurance

A title search, or abstract, is a search of public documents to determine legal ownership and to find out what the potential claims to the property are.

• Will a title search reveal all information about a property? No. A title search will not reveal claims that have not been entered into the public record (recorded).

Title insurance is a form of insurance that protects lenders and future homeowners from financial losses that may be sustained in the future resulting from adverse ownership or financial claims. The type of policy that protects the future homeowner is an “Owners Policy” and the policy that protects the lender is the “Lenders Policy”. The Owners Policy protects a property owner or homeowner from loss for as long as they own the property.

***  titleinsurancebrochure.pdf (maryland.gov)  ***

The lender’s policy protects the lender against loss for as long as the loan is outstanding and is reissued with every new loan taken against the property.  The owner is not the intended beneficiary of a Lender’s Policy.

Closing is the final step in the real estate transaction process. This is the time when the parties exchange ownership for payment. The title company will handle compilation of the required documentation and exchange of funds. At closing all legal documents are signed in front of a licensed settlement officer.

When a lender is involved, the lender will give you the final amount to send. The lender will finalize the Closing Disclosure (previously referred to as a Settlement Statement) right up to the time of Closing. Generally, the amount is known about three days prior to the Closing date. If you receive a Closing Disclosure from your lender, please call the lender representative to verify the final amount before delivering the funds to the title company. If there is no lender (a cash transaction) the Title Company will be able to provide the final amount of funds to be delivered about a week before the Closing date.