owner's title policy


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owner's title policy

Title insurance that protects the owner against loss if there is an adverse claim against the owner's property and that provides legal counsel to defend against adverse claimants. Typically, the mortgage lender will require a mortgagee's policy that will protect it, but the owner fails to specify that he or she also wants an owner's policy.The increased premium is usually negligible.If there is a mortgagee's policy but no owner's policy,and if there is an adverse claim to the property that is found to be good and not defeatable,the title insurance will pay off the mortgage lender to the full amount of its loan,but the owner will receive nothing and suffer the loss of its equity.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
You received an owner's title policy at your closing, paid for by the seller.
(69) Without this additional insuring language, the mezzanine lender would be denied coverage under the underlying mortgage borrower's owner's title policy since the mezzanine lender invariably would acquire its indirect equity interests in the underlying mortgage borrower after the effective date of the owner's policy.