PARRIS N. GLENDENING, Governor

Ch. 635

486-1.

(a)     Whenever in connection with any real estate transaction involving a purchase
money mortgage or mortgages on land situated and lying in this State any title [insurance
company] INSURER shall accept a premium for a policy insuring the title to [such] THE
property or [such] THE title [insurance company] INSURER, its agent, OR employee
[or approved attorney] shall accept a premium for mortgagee title insurance, the person
first accepting [such] THE premium shall insert the names of every insured in the binder
for the title insurance, or the title report and shall notify the buyer[,] OR his agent or
attorney (1) of the name or names of the insureds under each [such] policy, (2) of the
face amount of each [such] policy, (3) of his right and opportunity to obtain
simultaneous title insurance in his own favor, (4) of the additional premium that will be
required for the purchase of the same, (5) that the buyer's title insurance will be subject
only to the contingencies and conditions contained in the binder, title report, and policy,
(6) his right to review a sample of the form of policy in which [said] THE contingencies
and conditions shall be inserted, and (7) if his policy is not effective upon payment of
premium, a clear statement of the contingencies which must be satisfied in order to make
it effective. Any notice shall be in writing and shall be delivered immediately upon receipt
of the title insurance premium.

(b)     The person who must give the notice required under subsection (a) of this
section, before the disbursement of any funds, shall obtain from the buyer, at the time he
delivers the notice, a statement in writing that he has received the notice set forth in
subsection (a) of this section and that he either desires or does not desire owners title
insurance.

(c)     The original signed statement required by subsection (b) of this section,
together with a copy of the notice required by subsection (a) of this section shall be
retained by the person required to give notice under subsection (a) of this section until
issuance of the title policy in question and thereafter shall be forwarded to and retained
by the title [insurance company] INSURER for a period of three years. The statement
and notice shall be available for inspection by the Commissioner upon request.

(d)     [For the purposes of this section the term "approved attorney" means an
attorney-at-law who is not an agent of the title insurance company, whose certification as
to status of title, a title insurance company is willing to accept as the basis for issuance of
its title insurance policy.

(e)] For the purposes of this section the term mortgage shall include deeds of
trust.

486-2.

(a) In this section the following words have the meanings indicated.

(1) ["Approved attorney" means an attorney at law who is not an agent of
the title insurance company, whose certification as to status of title, a title insurance
company is willing to accept as the basis for issuance of its title insurance policy.

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