Who does an owner’s title policy protect?

Who does an owner’s title policy protect?

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

Answer: (D)

An owner’s title policy protects the person who owns the property—their own interest and, if applicable, their heirs—for as long as they own the property. It covers against title defects that existed at the time of the policy and could affect ownership or transfer of title, such as forged signatures, undisclosed heirs, or improperly recorded liens. This protection stays in effect as long as the current owner (or their heirs) holds the property, even through future transfers. This is different from a lender’s title policy, which would protect the lender's loan interest, not the owner. The government and the seller aren’t the beneficiaries of the owner’s policy, which is why the owner and their heirs for as long as they own the property is the best choice.

An owner’s title policy protects the person who owns the property—their own interest and, if applicable, their heirs—for as long as they own the property. It covers against title defects that existed at the time of the policy and could affect ownership or transfer of title, such as forged signatures, undisclosed heirs, or improperly recorded liens. This protection stays in effect as long as the current owner (or their heirs) holds the property, even through future transfers.

This is different from a lender’s title policy, which would protect the lender's loan interest, not the owner. The government and the seller aren’t the beneficiaries of the owner’s policy, which is why the owner and their heirs for as long as they own the property is the best choice.