QUESTIONS AND ANSWERS

Gold Coast Title Company through its underwriters, provides title insurance services to real estate buyers and sellers, builders, developers, lenders, brokers, realtors and many others who have an interest in the title to real estate. These parties are concerned that their rights and interests in the title to real property are clear at the time the property is purchased, that the transfer is handled correctly and that their interests in the title to the real property are safeguarded to the maximum extent possible. Title insurance is the application of the principles of insurance to risks, which are present in all real estate transactions.

For the average property owner, there are two different types of title insurance policies you need to be aware of:

• Owner's Title Insurance Policy
• Mortgagee's Title Insurance Policy

An owner's title policy (OTP) insures the purchaser that he/she owns the property subject to listed exceptions.

A mortgage's title policy (MTP) insures the lender that the lien they hold is a valid lien against the property.

​The mortgagee's policy protects the lender's interest only so long as the loan is outstanding and only in the amount of the balance of the loan at any given time. The owner's policy protects you up to the face amount of the policy during your ownership and after you have sold the property, if you have warranted the property to your subsequent buyer. The policies perform different functions; therefore, it is not possible for one policy to cover both the purchaser and the lender. 

Title insurance defends you in a lawsuit attacking your title and either corrects the title problem or pays the insured's losses up to the face amount of the policy. The policy also protects you after you sell the property for defects occurring prior to your ownership that cause a loss to a purchaser if the title was warranted by you. 

An owner's title policy insures you for as long as you and your heirs remain in ownership or have a liability by virtue of warranties to title given by you to a purchaser. A mortgagee title policy protects the lender until the loan is paid off.