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How title insurance works with seller financing

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07/24/2015 | Author: Editorial Staff

My client is purchasing a property by means of seller financing. I know that lenders require a mortgagee, or lender, title insurance policy to protect the lender from any problems with the title, but would the buyer in this case still have to provide a mortgagee policy to the seller?

Yes, if you're using the TREC contracts. Paragraph 4C of the TREC contracts state that if an owner policy of title insurance is furnished to the buyer in a seller-financing transaction, then the buyer has to provide the seller with a mortgagee policy of title insurance.

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Categories: Forms, Legal
Tags: legal, legal faq, trec form, seller financing, financing, title insurance, forms

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The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

While the Texas Association of REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, the Texas Association of REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on Any legal or other information found here, on, or at other sites to which we link, should be verified before it is relied upon.

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