381.015. Title insurance commitment, required statement, when--lender's insurance policy without owner's title insurance, notice given when, contents, retention--penalty for violation.

MISSOURI STATUTES AND CODES

381.015. Title insurance commitment, required statement, when--lender's insurance policy without owner's title insurance, notice given when, contents, retention--penalty for violation.

Title insurance commitment, required statement, when--lender'sinsurance policy without owner's title insurance, notice givenwhen, contents, retention--penalty for violation.

381.015. 1. As used in sections 381.011 to 381.412, the term "titleinsurance commitment" or "commitment" means a preliminary report,commitment, or binder issued prior to the issuance of a title insurancepolicy containing the terms, conditions, exceptions, and other mattersincorporated by reference under which the title insurer is willing to issueits title insurance policy. A title insurance commitment is not anabstract of title.

2. A title insurer, title agency, or title agent issuing a lender'stitle insurance policy in conjunction with a mortgage loan madesimultaneously with the purchase of all or part of the real estate securingthe loan, where no owner's title insurance policy has been requested, shallgive written notice, on a form prescribed or approved by the director, tothe purchaser-mortgagor at the time the commitment is prepared. The noticeshall explain that a lender's title insurance policy is to be issuedprotecting the mortgage-lender, and that the policy does not provide titleinsurance protection to the purchaser-mortgagor as the owner of theproperty being purchased. The notice shall explain that thepurchaser-mortgagor may obtain an owner's title insurance policy protectingthe property owner, within sixty days of closing and at a specified cost orapproximate cost, if the proposed coverages are or amount of insurance isnot then known. A copy of the notice, signed by the purchaser-mortgagor,shall be retained in the relevant underwriting file at least fifteen yearsafter the effective date of the policy.

3. A violation of any provision under this section is a level oneviolation under section 374.049, RSMo.