An owner’s title policy protects which party?

An owner’s title policy protects which party?

• A. The lender
• B. The owner and heirs for as long as they own the property
• C. The government
• D. The seller

Answer: (B)

An owner’s title policy protects the owner and their heirs for as long as they own the property. It covers against title defects and hidden risks that could affect ownership—such as forged signatures, undisclosed heirs, errors in public records, or liens and clouds discovered after purchase. The protection follows the property to future owners, meaning heirs can continue to benefit from the coverage if they inherit the property. This type of policy specifically shields the owner’s title, not the lender or the government, and not the seller. A separate lender’s title policy is issued to protect the lender’s interest up to the loan amount.

An owner’s title policy protects the owner and their heirs for as long as they own the property. It covers against title defects and hidden risks that could affect ownership—such as forged signatures, undisclosed heirs, errors in public records, or liens and clouds discovered after purchase. The protection follows the property to future owners, meaning heirs can continue to benefit from the coverage if they inherit the property. This type of policy specifically shields the owner’s title, not the lender or the government, and not the seller. A separate lender’s title policy is issued to protect the lender’s interest up to the loan amount.