Quote:
Originally Posted by retiredguy123
Are you saying that the title insurance to protect the bank's interest in the property is optional, or just the owner's title policy? It is my understanding that the bank always requires a bank title policy, but that the owner's policy is optional. An owner's policy will only protect your interest in the property, so the bank doesn't care whether you buy it or not.
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Correct. I went back and checked my estimated closing costs statement and there is a lender's title policy that is not optional and a borrower's policy that is optional. I guess that explains why they make it optional for the buyer - because they are covered for their interest in the property either way.