Tennessee law TCA § 56-35-133(a) requires that:
“…the person conducting or handling the settlement…shall obtain from the purchaser a statement in writing that the purchaser has received a notice that owner’s title insurance may be available to the purchaser and that the purchaser does or does not desire to purchase the insurance coverage.”
The notice is required in any transaction involving the purchase or sale of a fee simple possessory interest in real property in the state of Tennessee. In the past, our Tennessee Title Insurance Disclosure (Cx4167), which prints to fulfill these requirements, printed in all Tennessee Initial Disclosure packages regardless of transaction type. Since the disclosure is only required for the “purchase or sale of a fee simple possessory interest in real property,” we are now refining the print configuration to only print when the Loan Purpose is Purchase, Construction-to-Permanent, or Construction-Only.
Similarly, in Florida, FSA § 627.798 requires “the commission” to adopt a form that is used to provide notice to “purchaser-mortgagor” that the “purchaser-mortgagor is not protected by the title policy of the mortgage.” The statute does not give further definition of “purchaser-mortgagor,” nor give direction on when this notice is to be given. As such, we are taking a broad approach to comply with this notice requirement by printing this notice any time real estate can be purchased. We are adjusting the configuration to print when Loan Purpose is Purchase, Construction-to-Permanent, or Construction-Only in Florida Initial Disclosure packages.
These changes will be in effect on December 20, 2018. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.