TRID – Understanding the TILA-RESPA Integrated Disclosure (“TRID”) Volume 20

11 Feb

Volume 20

If the borrower/buyer declines purchasing an Owner’s Title Insurance Policy, is there a way I can protect my company from the buyer later denying they were offered such coverage?
This is a very important question.  In areas of the country where the buyer pays any portion of the Owner’s Title Insurance premium, there is a requirement in the Rule to use the modifier “optional” on the Closing Disclosure when the premium is listed in Section H.  Remember, cash and commercial transactions do not fall under the provisions of the Rule; therefore, no modifier is required. Be prepared to discuss the benefits of an Owner’s Title Insurance Policy, which is the only protection consumers could receive for their interest in the property, as the Lender’s Title Insurance Policy is protection for the lender only.


Some states currently have a statutory requirement that buyers must sign a waiver if they decline coverage; however, even if the state does not require it, you may want to consider having the consumer sign a hold harmless letter for you and your company/firm. Note: if your state has required waiver language, please check with state counsel to make sure your state doesn’t have a statutorily mandated waiver. If your state requires specific waiver language or a different waiver form, please disregard this new form.

Old Republic Title created a waiver template which can be printed or used in fillable PDF (with customizable fields – Date, Property Address, File Number, Premium Amount, and Agent Company Name). Please note that only the editable areas of the waiver can be modified. The “Waiver – Owner’s Title Insurance Policy” can be found in the following places on StarsLink:

1) Agent Services → Underwriting Practices Resource in ORT Bulletins or ORT/ALTA Forms & Endorsements sections; and
2) OR Title Guide → Bulletins or Forms sections.

The information provided is for informational purposes only and should not be used or relied upon for any other purpose. This information is not intended nor should it be construed as providing legal advice. Tradition Title Agency does not guarantee, and assumes no responsibility for, the accuracy, timeliness, correctness, or completeness of the information. Always seek the advice of competent counsel with any questions you may have regarding any legal issue.


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