Owner's title insurance protects the property owner against losses from title defects — undisclosed liens, forged deeds, boundary disputes, etc. One-time premium at closing; remains in effect while the insured owns the property.
Owner's title insurance covers: forged documents in the chain of title, undisclosed heirs, tax liens, judgment liens, errors in public records. Lender's title insurance (separate policy) protects the lender's interest; owner's policy protects the owner separately.
LA multifamily buyers almost always obtain owner's title insurance at closing (in addition to lender's policy required by the lender). Cost: 0.2-0.5% of purchase price, one-time. Protects against title defects discovered years later.
From the Sterman LA Multifamily Glossary — defined the way a broker with $1.41 billion across 254 closed transactions actually uses these terms.
Michael Sterman, Senior Managing Director Investments, Marcus & Millichap.
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