Waiver of right to purchase owner’s title insurance upon issuance of policy to mortgagee; form of notice and waiver.
1. A title insurer or title agent who issues a policy of mortgagee’s title insurance upon a loan which is made simultaneously with the purchase of all or part of the real property which secures the loan, where no owner’s title insurance has been ordered shall, before the disbursement of loan proceeds or the issuance of the mortgagee’s title policy, inform the owner in writing that the title policy is to be issued, that the policy does not protect the owner, and that the owner may obtain title insurance for his protection. If the owner elects not to purchase title insurance, the title insurer or title agent shall obtain from him a statement in writing that the notice has been received and that the owner waives the right to purchase title insurance. The statement, together with the waiver, if any, shall be retained by the title insurer or title agent for not less than 5 years after its receipt.
2. The form of the written notice and waiver shall be substantially as follows:
RE:...........................................................................................................................................
Notice is hereby given, as required in NRS 692A.210, that a mortgagee’s title insurance policy is to be issued to your mortgage lender. The policy does not afford title insurance protection to you in the event of a defect or claim of defect in title to the real estate which you are acquiring. An owner’s title insurance policy affording title insurance protection to you in the amount of your purchase price, or for the amount of your purchase price plus the cost of any improvements which you anticipate making, may be purchased by you. NRS 692A.210 requires that you sign the statement printed below if you do not wish to purchase an owner’s title insurance policy.
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Name of Insurer Issuing Policy
We have received the foregoing notice, and waive our right to purchase an owner’s title insurance policy for our protection.
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Mortgagors
Last modified: February 27, 2006